Group Economics: house prices will fall again in 2021

Prices are rising quickly and the number of transactions is huge. Economists expect house prices to rise an additional six per cent in 2020. The level is being pushed up by interest rates, which have remained low due to intervention by the central banks. Another factor is thepersistent housing shortage. In the first five months of 2020, 89,000 houses changed ownership, which is 4,500 more than during that same period one year earlier.

Despite positive results in the first five months, Philip Bokeloh, housing market specialist at ABN AMRO’s Group Economics, says it’s inevitable that the housing market will be affected by the economic downturn caused by the coronavirus. Bokeloh believes house prices will fall by two per cent next year and that the number of transactions will fall by five per cent thisyear and ten per cent the following year.The housing market monitor offers more than just analyses of prices and transactions. The article “Tanker die langzaam van koers verandert” (Dutch only) can be found on insights.abnamro.nl Clients of ABN AMRO can visita separate page for the housing market monitor (Woningmarktmonitor) under Mortgages.