The housing market is cooling more slowly than predicted so far and prices will not fall next year, but stabilize, writes ABN AMRO in a report on the housing market published on Thursday. The bank previously expected prices to fall by 2 percent next year.
This means that the new figures are more positive than those of earlier this year. The bank predicts that house price growth will be close to 7 percent this year. ABN AMRO is somewhat more positive in this report, because the number of home sales continues to increase despite the corona crisis and mortgage interest rates are falling. In addition, overbidding is the norm, as a result of which the price level continues to rise.
ABN AMRO also writes that because of the corona crisis, people probably find their home more important, because they spend more time there. Although the bank has no hard evidence, the company suspects that people have different requirements for their home and are more interested in a home with an extra room or garden.
Due to the low mortgage interest rates, homes have become slightly more affordable and a relaxation of the mortgage rules in 2021 will make it easier to buy a house. Still, according to ABN Amro, prices are unlikely to continue to rise, because unemployment will rise further in the coming year. As a result, houses are generally less affordable and the market will cool down slightly in the coming year.
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