What’s going to happen to the real estate prices in Amsterdam.
Recently I read an article from the ABN-AMRO about their vision on the home prices in Amsterdam. One of the possibilities they have stated is that the prices will eventually go down.
The question is at what rate the prices might start to drop. In this market, it is likely that people will decide not to sell and to stay in their own or rented home longer.
When people will make this decision, the supply of the existing homes will decrease. If new constructions also come to a standstill, the supply will be even less in the core regions (like Amsterdam, Utrecht). This is quite plausible since newly build homes have become an expensive piece of real estate.
However, it’s now also become clearer that part of the demand for real estate has already decreased. We already see this with investors, but also in the number of people interested in a property. Is that bad? Not necessarily.
The shortages on the housing market were so great that other groups will now have more opportunities. The starters and those who need to finance via a mortgage will now have more opportunities to obtain a home.
So far, the quality of the candidates buyers is still good.
In these times a much more active role of the real estate professional is demanded in which our ability to adapt has become an important trait.
The online video viewing now often replaces the first viewing. We do not see this as a problem. In addition, we see that the conditions subsequent for the sale of your own home is being used (also by us). This means that you can buy a new home, without the risk of not selling your own.
In any case there will be a new balance. Fewer people looking for a property, but certainly less sellers who are willing to sell theirs.
We’ll have to see what happens going forward. These are interesting times indeed.