In the second quarter of 2010, house prices dropped on a yearly basis in more than 50% of all the municipalities. In 6 municipalities the price decline was more than 5%. However, in 18 municipalities house prices rose by more than 5%.

The number of sales in the second quarter of 2010 is higher with 37.8 thousand sold houses. This is a rise of 5.1% compared to a year ago. The number of approved mortgages remained the same as in the first quarter of 2010, but fell by 17,3% on a year-on-year basis. On a yearly basis, in the second quarter of 2010 2,038 houses were sold by auction. This is a slight decrease of -1.4% of compared to the first quarter of 2010 and an increase of 6.5% compared to a year ago.

In the second quarter of 2010, on average 24% of the monthly income is spent on housing. In the second quarter of 2008, this was a higher percentage of 26.7%. The index presents that part of our net monthly income that is being used for living. For constructing the net housing costs the average house prices (WOX) were used as were the average mortgage interest rates.

The average price of newly built houses dropped by approximately -0.6% in the second quarter of 2010 compared to the second quarter of 2009. The average price returned to the level of the first quarter of 2009 and lies around 270 thousand euro.

Based on the current developments in the Dutch housing market, the WOX index is predicted to show a year-on-year price change of +1.1% for the third quarter of 2010.

For further information or if you would like to sign up for our Quarterly WOX report mailing on the price developments in the Netherlands, please contact us.

Email: petra.visser@abfvaluation.nl