16 Sep Blog by Arie: 40 years in real estate
I’m now … years old and have been working in real estate for nearly 40 years, an industry that almost everyone has an interest in or an opinion about. What continues to amaze me after all these years is that real estate, specifically existing properties in my case, is never the same. Not only do people and their actions constantly evolve, but the housing market is also ever-changing, influenced by government actions and, following closely behind, the Dutch banks. In my opinion, this is why my work remains interesting and varied.
After the COVID-19 period, the housing market, especially sale prices, saw a significant increase in the first half of 2022, only to drop by around 10% in the second half. Then, starting from the second quarter of 2023, prices began to rise again. As I write this, mortgage interest rates are between 4.5% and 5%—three times what they were just a year and a half ago! The current housing supply in Almere consists of about 220 existing homes actually for sale. And for this very limited supply, there are multiple interested buyers.
So, while the world seems to be a challenging place with various wars being fought, mortgage rates tripling, and less-than-optimistic economic prospects, homes are still selling well, and almost without exception, buyers are bidding over the asking price. Despite the rapid pace of change, it seems to have had no negative impact on the interest in purchasing homes.
At our office, we meet people who can afford the high cost of securing housing. But we often hear stories from those who struggle to buy or rent. Heartbreaking cases sometimes involve families being forced to move back in with relatives, often with multiple children. Some people simply cannot find housing or are excluded due to higher interest rates and lower mortgage options. While I think I understand the government’s direction for the housing market, it seems that the decisions being made are not always well-informed. Many people feel the consequences of these policies daily.
Although I’m happy that homes are selling well, we at the office are very much aware of those who struggle to buy a home, particularly first-time buyers who need around €400,000 to make a purchase. Unfortunately, we don’t have a solution for them. It’s as simple as that. We need more movement in the market, more new construction (at reasonable prices), and fair rental agreements. Let’s hope that a solution is possible because the housing shortage is becoming a major factor in life decisions for many people.
My work will continue to stay interesting for a while; all these changes mean the coming years will be just as dynamic!
