Housing Market Alert: Home Prices to Jump 8.7% in 2025 – What It Means for You

The real estate market continues to defy expectations. Just when many were hoping for a cooldown, experts at ABN Amro bank have revised their forecasts upward: home prices are now expected to rise by a significant 8.7% this year, followed by a more moderate 3% increase in 2026.

But what do these numbers truly mean for you, whether you're looking to buy or sell? Let's break down the current market dynamics and how you can best navigate this complex landscape.

The Key Drivers Behind the Price Surge

1. Rising Wages

The primary engine for this new price hike is strong wage growth. With increased purchasing power, more households can secure larger mortgages, which directly fuels demand and, in turn, drives up prices. It's a straightforward mechanism: when more people can afford to pay more, property values rise.

However, economists anticipate that income growth will slow down next year, which explains the forecast for a smaller price increase (3%) in 2026.

2. A Sharp Increase in Transactions

The number of home sales has seen dramatic growth. With 149,534 homes sold through August 2025, the market saw a 16% increase compared to the same period last year. This surge is partly fueled by investors selling off former rental properties. Higher taxes and stricter rent control laws have made buy-to-let investments less profitable, prompting many landlords to put their properties on the market.

This wave of sales from investors is expected to stabilize soon, with transaction growth predicted to slow to just 1% in 2026.

What Does This Mean for You?

Advice for Buyers

In a rising market, waiting is rarely the best strategy.

• Act decisively: The projected 8.7% increase this year means that every passing month could add a significant amount to the price of your desired home.

• Secure your financing: Get a mortgage pre-approval to know your exact budget. This will strengthen your position when you make an offer.

• Be flexible: Economist Mike Langen notes that price gaps between different regions are narrowing. Consider exploring areas slightly outside your initial search zone; you might find better opportunities.

Advice for Sellers

The current climate is extremely favorable for sellers.

• Now is the perfect time to sell: High demand and a limited supply of new-build homes create the ideal environment to get the best possible price for your property.

• Focus on presentation: Even in a seller's market, a well-presented home will sell faster and for a higher price. Invest in minor repairs and professional home staging.

• Trust an expert: An accurate valuation and an effective marketing strategy are crucial. A real estate agent knows how to position your property to attract the most qualified buyers.

A Tense Market Filled with Opportunity

The housing market remains tight, largely because the supply of new homes is failing to keep up with demand. The national target of building 100,000 new homes per year is slipping further out of reach, which will maintain upward pressure on prices in the medium term.

Whether you're looking to buy your dream home or sell your property for the best return, understanding these dynamics is essential.

The market is moving fast, and professional guidance is the key to success. Contact our agency today for a personalized consultation and let's navigate this exciting market together.

The Dutch housing market, influenced significantly by the dynamics of Amsterdam and the Randstad, continues its upward trajectory. While this presents challenges, it also underscores the strong investment potential in Dutch real estate. By understanding the 'ripple effect,' preparing thoroughly, and leveraging expert guidance from Amsterdam Apartment Advice (AAA), you can successfully navigate this competitive landscape and find your ideal home in the Netherlands. Whether your search is for an apartment in Amsterdam or a family home in a quieter province, staying informed and well-advised is your key to success.