Home Buyers Have To Spent More: Rising House Prices In 2024

Home Buyers Have To Spent More: Rising House Prices In 2024

Home buyers are spending more and making increasingly higher offers for new homes. Consequently, the average house price in April 2024 reached a record high of €435,984, which is 7.5% higher than the same time last year.

The number of home sales also increased. Housing prices have been rising since June 2023 and continue to climb. In April, sale prices were 1% higher than in March of this year. Additionally, homes are now more expensive than they were in July2022, the previous peak month for housing prices. This year has also seen a significant number of homes being sold. In April, there were 15,689 home sales, a 22% increase compared to the same month last year.

Rising House Prices in 2024

CBS chief economist “Peter Hein van Mulligen” attributes the rising prices to increased disposable income and lower interest rates. "Salaries have seen significant growth over the past eighteen months. Additionally, inflation has slightly decreased since last year, and people still have substantial savings from the pandemic period," he explains. Furthermore, mortgage interest rates have been declining since the fall of 2023. There is also a strong demand for new homes, even among existing homeowners. CBS research indicates that elderly individuals living alone in family homes often wish to downsize, provided they can find a suitable home in their preferred location.

Despite the tight housing market and record prices, the substantial increase in sales is a positive sign, according to Van Mulligen. "It appears that house hunters are still able to find homes that meet their needs. There is a common perception that homes are too expensive for certain groups, but this does not seem to be the case."

Get in touch with Financial Consultancy Holland

With these financial shifts, navigating through your financial planning and investment decisions can seem daunting. Financial Consultancy Holland stands ready to assist with personalized advice and tailored solutions that cater to these changes. Whether it's optimizing your salary benefits, revising your investment strategies due to box 3 taxation changes, or making the most out of the new housing and mortgage regulations, our team of experts is here to guide you. Don't navigate these changes alone. Let us assist you in optimizing your financial strategy to make the most of the 2024 financial adjustments.

Do you have questions about your financial situation in the Netherlands or would you like to get in touch with us? You can do this via our contact form and we will contact you as soon as possible. Looking forward!