Housing market: more overbidding and rising prices

The owner-occupied housing market is clearly in demand in the first quarter of 2024. In the normally quieter first quarter, transactions have actually increased this time. More viewers are coming to see homes for sale. The number of bids on a home is also increasing. This confirms the increased confidence among home buyers. This quarter, 473 homes were sold in the Alkmaar region. The average transaction price was €452,000. Compared to the first quarter of 2023, the average sales price increases by 7.7%. Compared to the fourth quarter of 2023, this is an increase of 3%. The upward trend appears to be continuing this quarter. The slightly falling interest rates in combination with significantly increased wages have increased the borrowing capacity of home buyers, which helps increase the confidence of home buyers. At the same time, it is a concern because the housing supply is drying up due to the high and increasing demand in the market. This quarter, 17.5% fewer homes were put up for sale than in the first quarter of 2023 and 5.6% fewer homes compared to the fourth quarter of 2023. This is also evident from the shortage indicator, which will be released in the first quarter of 2024. at 2.9, while the indicator stood at 3.5 in the same quarter last year.

Outbid

Due to tight market conditions, overbidding is increasing, which in turn leads to rising prices. The number of sales is lagging behind because too few homes are being put up for sale. The low supply and rising demand translates into rising asking prices and a growth in the number of overbids. The average asking price has increased by 7.7% and amounts to €579,000 this quarter. In addition, 44% of transactions are overbid. This percentage was only 27% in the first quarter of 2023. Due to the small number of homes for sale, the flow is slowing down. The only way to solve that problem is to build and make smart use of the existing stock, through transformation or, for example, house division.