Funda Index: buying intention falls, but supply rises by 10 percent

The number of home seekers planning to buy is falling slightly. At the same time supply is rising, so homes stay on the market a little longer. What does that mean for you as a buyer or seller? We set out the main trends from the Funda Index for Q3.

Buying intention declines

The intention among home seekers to buy within a year fell slightly, by 1 percent to 50 percent compared with the previous quarter. Earlier this year that figure was still 53 percent. According to Funda, high house prices play an important part in this declining willingness to buy, particularly among younger people.
Among younger home seekers, no less than 56 percent think homes are too expensive. Among those over 35, price is less often a reason not to buy. That shows affordability is above all a challenge for first-time and younger buyers.

Different motives per age group

Interestingly, the different age groups each have their own reasons for wanting to buy:

35 to 54: this group mainly wants a roomier home and is often looking for a new area to live in
55 to 69: more than half want a home suited to later life. Downsizing is also a wish in this group
70 and over: the majority (63 percent) mainly want a home suited to later life

More supply and more critical buyers

The supply of homes on Funda is stable compared with the previous quarter. But compared with exactly a year ago, supply is up 10 percent. That is good news for buyers: there is more choice.
As a result the number of interested parties per home has fallen slightly and homes stay on the market a little longer. According to Funda this suggests seekers have more choice and are perhaps a little more critical in their search. That is an interesting development after years of scarcity.

First-time buyers face the most pressure

Although the total number of interested parties per home is falling, demand in certain price brackets remains enormous. Funda chief executive Joost Dop explains: "The majority of first-time buyers are still looking in the 200,000 to 300,000 euro bracket. In total almost three quarters of all first-time buyers are searching in the segment up to 400,000 euro, price brackets where competition is high."
The figures speak for themselves:

Average per home: 12 contact requests
Homes between 200,000 and 300,000 euro: 18 contact requests per home on average
Homes between 300,000 and 400,000 euro: 14 contact requests per home on average

This means first-time buyers still face stiff competition in the affordable segments.

Confidence among sellers remains high

Good news for anyone considering selling: seller confidence remains undiminished. In the third quarter it stood at 79 percent, almost identical to the second quarter and virtually the same level as last year (80 percent).

Dissatisfaction with housing supply persists

Almost half of adults (49 percent) are dissatisfied with the supply of homes in their own region, according to research by Statistics Netherlands. Almost 40 percent expect no improvement in the coming years.
Dissatisfaction differs sharply by region:

North Holland and Utrecht: around 60 percent of residents find supply insufficient
Drenthe, Friesland and Zeeland: more than 30 percent of residents are satisfied or very satisfied

Among adults, 38 percent expect the supply of homes in their region to get worse in the coming years. Around 20 percent think that alongside housing, amenities such as public transport, GP practices and green space will also deteriorate.

What does this mean for you?

If you are looking for a home:
The increased supply (up 10 percent) and the fact that homes stay on the market longer give you more room to be critical and to compare properly. Outside the bracket up to 400,000 euro in particular, competition is lower.
Are you a first-time buyer searching in the segment up to 400,000 euro? Then it is important to be quick and well prepared. Competition in this segment remains high, with 14 to 18 contact requests per home on average.
If you are selling:
Seller confidence is high, and rightly so. With the right pricing and a good presentation of your home you can still count on plenty of interest. Homes in the affordable segments in particular continue to do well.

Personal advice at M&D Real Estate

At M&D Real Estate we are glad to help you make the most of current market conditions. Whether you are looking for a home in a busy segment or want to put yours on the market, we are here with personal advice.
We pay particular attention to first-time buyers searching in the affordable segment. We understand the challenges and help you to be well prepared and able to act quickly when the right home comes along.
Thinking about improving the energy performance of a newly bought or current home? Our partner Labelbewust can help make your home more efficient, which is good not only for the environment but also for your monthly costs and the value of your property.
Get in touch for a conversation without obligation about your situation. We are happy to help you take the right steps in this changing market.