ABN AMRO forecasts 15% increase in house sales
- Housing Market
Karen de Vries
Press Officer Retail & Private Banking, Sustainability, Sponsoring
Group Economics at ABN AMRO expects the number of house sales in 2015 to be much higher than was initially believed. Where in July a 10 percent increase in the number of transactions relative to last year was predicted, the economists are now predicting a 15 percent rise. Group Economics has not modified its forecast of 5 percent for 2016.
Philip Bokeloh, one of ABN AMRO’s economists, explains, ‘The housing market is continuing its strong upward trend. Low interest rates and the economic recovery are important reasons for the optimism. The rising prices for houses mean fewer home owners left with a potential residual debt, and many people who for years have put of a relocation are now moving. Boosted by this demand backlog, the housing market is now surging.’
Unchanged forecast for rise in house price
Midway through the year Group Economics predicted that house prices would rise by 3 percent. This estimate remains unchanged. The projected increase applies to house prices in all the provinces of the country.
Mortgage volume increasing
For nine consecutive quarters, the mortgage volume dropped as people repaid large sums on their loans. The first signs of recovery (0.1 percent) were recorded in Q2 of this year. One of the reasons for this upturn is the increase in new houses sold. Group Economics expects that the total mortgage volume in the Netherlands will continue to rise for the present.