House price rises to continue in 2007

15th November 2006, Comments 0 comments

15 November 2006, AMSTERDAM — House prices will rise by 5.5 percent this year, but slow to a 3.5 percent increase in 2007, the Rabobank forecast in its quarterly housing market report on Tuesday.

15 November 2006

AMSTERDAM — House prices will rise by 5.5 percent this year, but slow to a 3.5 percent increase in 2007, the Rabobank forecast in its quarterly housing market report on Tuesday.

The Rabobank said house prices rose 2.1 percent in the third quarter compared with the second quarter.

On yearly comparative basis, prices climbed 6.2 percent to average EUR 241,000, news service NIS reported.

"Capital market interest rates continue to develop favourably, making buying houses attractive for many people," Rabobank said.

It said current problems on the US housing market will not spread to the Netherlands, because supply here still lags far behind demand.

Consumers in the US are less prepared to spend money on existing houses, leading to a fall in home new home construction and a subsequent economic slowdown.

[Copyright Expatica News 2006]

Subject: Dutch news

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