Dutch house prices in the third quarter fell 5.8% from the previous three months, the country's main real estate industry group said on Wednesday.
The Union of Estate Agents (NVM) attributed the decline to rising mortgage rates. Average Dutch interest rates on a 20-year mortgage without state-backed guarantees have risen to 4.3% from about 1.4% late last year.
Dutch home prices doubled in the 2013-2021 period, driven by continuing shortages and low interest rates, according to Statistics Netherlands (CBS), with increases peaking at nearly 20% year on year last January.
Housing supply remains tight and sale prices of existing homes in the third quarter averaged 425,000 euros ($420,000), 2% higher than a year earlier despite the third-quarter decline, the NVM said.
Also weighing on the market is the cost-of-living squeeze, the NVM said, with inflation in the Netherlands hitting 17% in September, driven by ballooning energy prices. ($1 = 1.0119 euros) (Reporting by Toby Sterling Editing by David Goodman)