At the start of the lockdown I wrote a blog, and later a follow-up. We've now been doing viewings for two months with gloves on, keeping our distance and washing our hands. No more shaking hands, which often means we all forget to introduce ourselves. But we're completely used to it again. The housing market in Utrecht is incredibly busy.
Contents
- Panic mode
- Even greater demand
- Which factors will have an influence?
- The housing market in Utrecht
- Buying a house?
- Selling a house?
Panic mode
In the first few weeks, lots of sellers wanted to sell their house quickly before our country had to go into lockdown. It seemed as if buyers were thinking: grab what I can, I want to buy a home quickly now. Not just hoarding groceries, but a house too. There were a few great opportunities among them, for people who were afraid no better offer would come. You also noticed that people who wanted to buy a home started having some doubts. Is it smart to buy now? What will my job look like soon? I wrote a blog to help you work out for yourself what was smart. Buy or not? Mainly because I wanted to advise my buying clients well. What do you pay in rent? How much could prices possibly fall? When is the break-even point then? But also: how important is a nice home now? All at once you saw an increase in the value of homes with a big garden or enough space to work from home.
Even greater demand
Last month I wrote that we still had around 35,000 searchers and 1,200 homes available, including new-build supply. Now, a month later, we have 39,000 searchers and around 1,400 homes. So there are more homes, but also even more searchers in Utrecht. Whereas in recent months I was able to make lots of purchases because there was a bit more supply, my pool of buying clients started to dry up a little. As far as I'm concerned, that's not so bad, because the market was so incredibly intense. But over the past two weeks I've been called on average twice a day for a buying consultation. That's actually quite a lot for me. You see, I only take on 1 searcher per search category. Last quarter, the price rise compared with the same quarter a year earlier was still 6.8%. The rise is enormous, and I expect it to keep increasing for a while yet.
Which factors will have an influence?
The support measures run until 31 May 2020. After that, companies that have applied for support may lay people off without a penalty. At the moment, interest rates are still low. There are mortgage lenders where rates are rising. But there are also mortgage lenders where rates are falling. Will more companies go under? What kind of influence will that have on the housing market in Utrecht? Lots of expats have gone back, and lots of rental homes are empty. Will that have an influence? Retail is having a hard time, and so is the office market. The stock market tumbled. But residential property investments in particular stayed stable. What influence will that have in the long term? If a crisis comes that's really worse than the last credit crunch, should we wait to buy a home in Utrecht now or not?
The housing market in Utrecht
The housing market isn't one thing. Not an object or something abstract. The housing market in Utrecht, for example, is very different from the housing market in Amersfoort. There's a shortage throughout the country. But it's important to look at what the developments are, what the likely demand will be and how the investment will ultimately turn out. I recently had someone on the phone. She was looking for an investment. But the transaction price couldn't be more than €5,000 per m2. To me, it seems wiser to look at the investment itself. Where is it? What's the yield? But also: what's the potential? Because that's what it's about.
Buying a house?
Take a good look at what you want as your maximum financial burden. Over what timeframe am I buying it? What will I pay off, and what do I want my life to look like in 5 years? These factors can play a role in deciding which house you buy in these uncertain times. Because don't forget: with 39,000 searchers and 1,400 homes, we still have a lot of searchers to leave behind before we reach equilibrium. If it turns out to be a V-shaped dip in the economy, you might well be paying a lot more next year.
Selling a house?
Have you already bought a house? Then decide together with your estate agent when a good moment is to put your home on the market. Is it, for example, a new-build home with completion far in the future? Then look together at what might change and what influence that could have on the home you've already bought. Do you want to sell now and are you wondering whether this is a good time? I say a wholehearted yes! As a selling agent, you'll need to have the figures and knowledge at the ready to win over the doubters. But we're selling incredibly well at the moment.
