ABN AMRO: House Prices Are Rising By 8.5 percent This Year

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ABN AMRO: House Prices are Rising by 8.5 Percent this Year. ABN AMRO expects house prices to increase by an average 8.5 percent this year and an extra 7 percent in 2019. Previously, the bank expected price increases of 8 and 5 percent respectively, said by MAG Mania.


The bank expects interest rates to remain low for the time being, as a result of which house prices will rise faster than previously anticipated.

“We are faced with disappointing international economic data, renewed doubts about Italy and the increased threat of a trade war,” explains Philip Bokeloh, an economist at ABN AMRO.

“Because of these judgments, we have adjusted our interest rate estimates downwards.”

The overall presumption is that interest rates will rise again over time.

“The European Central Bank (ECB) wants to restore monetary policy, and we think the bank will take plenty of time for this because of low inflation”, Bokeloh.

According to the Planet Engine, ABN AMRO fears that any threatening trade wars will have a negative impact on the housing market.

Consumers will then, according to Bokeloh, become more reticent about making large purchases, such as a home.

For a long time, home buyers preferred a mortgage with long maturity. Probably this could change if the long-term interest rate rises, while short-term interest rates settle at a low level, ABN AMRO expects.

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