Housing Market Indicator

overall score, actual per Q1 2020

Housing Market Indicator

The Housing Market Indicator (HMI) fell to 7.0 in the first quarter compared to 7.4 in the fourth quarter of 2019. The exact implications of the COVID-19 crisis on the housing market are not yet clear, however the decrease of the HMI indicates that market conditions are getting tougher.

The COVID-19 crisis has a major impact on both individual citizens and businesses in the Netherlands. Some early signs of the possible impact on the Dutch economy are already visible. GDP was 0.5 percent down relative to Q1 2019, consumer confidence has plummeted in April to -22 and unemployment increased by 15%.

Figures for the reporting quarter on the housing market do not yet or hardly reflect the effects of the coronavirus outbreak. For the time being, we see little negative impact on the price level of owner-occupied and rental homes. Strong demand seems to lay a firm price foundation for mid segment rental homes.

However, there are signs that consumers increasingly take a wait and see approach when it comes to large expenses. The declining GDP and rising unemployment will undeniably influence the housing market but in what way is still uncertain.