Fall Cabinet Influence on Dutch Real Estate Market

The no-cabinet situation in the Netherlands has had a definite influence on the housing situation in the Netherlands. First, in March 2010 the political parties could not reach an agreement on the Afghanistan mission and then the wild card Wilders (known for his continual violation of Article 18 of the Declaration of Human Rights) caused for prolongation of the formation of new cabinet.

In unstable economies people will hold on to what they've got and not make large investments. Since the fall of the cabinet in March the number of houses for sale has climbed while the prices took a dive. This can be seen in the statistics on the Dutch site Huizenzoeker (which means Home Finder).

(Average House Price)

(Number of Houses for Sale)

Only very recently the cabinet was formed and since then Realtors have been positive on the response of the market. More houses are being sold and the turnover seems also to be shortening. However it is too early to say what the full affect will be, but we can project that the prices and availability will level with the amounts in March of this year, and hopefully improve even from that level.