Starters strike at declining housing market | Living

For years, starters had no chance on the housing market. They had to outbid considerably and often only with substantial financial support from the parents the step can be taken on the owner-occupied market. But the tide has turned. Starters no longer have to outbid, there is even room to negotiate the asking price again. And because municipalities are introducing a self-occupancy obligation, there are also fewer investors who drive up the price. Add to that the ever-decreasing house prices and things are looking increasingly rosy for first-time buyers, says the mortgage broker.

Only the increased interest rate seemed to throw a spanner in the works, but calculations by De Hypotheker show that this is not the case. Despite the higher mortgage interest, it is possible that the net result is slightly cheaper for starters because they have to borrow less for the same house.

,, Home buyers have almost twice as much choice of houses on offer and outbidding when purchasing a home is often no longer necessary. Although they can borrow less due to the increased mortgage interest, young adults are increasingly getting a foot in the door. While young homebuyers are still encountering obstacles in their search for an affordable home, various signals indicate that the tide is starting to turn,” says de Hypotheker.

Compared to last year, the average selling price fell by 8 percent and the average mortgage amount by 9 percent. And the mortgage advisers notice that. The number of mortgage applications at De Hypotheker was 8 percent higher in the first quarter than in the first quarter of last year. According to economists from the major mortgage lenders, house prices will continue to fall this year.

It has been especially hard in the last few months. The number of mortgage applications for the purchase of a home among homebuyers up to the age of 35 increased by almost a quarter in the first quarter compared to the last quarter of last year. This number increased particularly sharply in Limburg (+56 percent), Gelderland (+51 percent) and Overijssel (+40 percent).

The supply of starter homes is increasing. Investors are leaving the scene not only because of the self-occupancy obligation, but also because the transfer tax has been increased for them. In addition, housing minister Hugo de Jonge has plans to regulate rents. He is brooding on a maximum rent for free sector rent, which may lead to more rental homes being sold because they will not yield sufficient returns. Part of it is affordable for starters.

Good news for young two-income couples. Compared to previous years, they have a much higher chance of obtaining a home. At the same time, De Hypotheker emphasizes that the housing market is still tight.

On balance, the position of starters has remained fairly stable over the past year, De Hypytheker concludes, but the near future looks favourable. “The position of single starters has not changed, buying a house is still very difficult for them,” says Menno Luiten, commercial director of De Hypotheker.