In recent years, the cost of buying a home has been higher than renting, but this trend may be changing as the National Bank has lowered interest rates once again. This has led to an increase in demand for condominiums and more people considering home ownership. With the interest rate situation relaxing significantly over the past six months, many in Switzerland believe that interest rates will not rise in the near future.
The lower interest rates have made condominiums more appealing for those looking to buy their own homes. While there has been an increase in the number of advertised condominiums over the past two years, there is still a relatively large number of used properties on the market. These properties are often priced high, leading to longer selling times and more supply in the market. Despite this, transaction prices for condominiums have increased with no signs of a trend reversal in 2023.
Since 2022’s interest rate turnaround, home prices have consistently risen and almost doubled at times. However, with the recent cut by SNB on interest rates, owning a home may once again become comparable to renting. Sellers are likely to hold firm on their asking prices especially if interest rates continue to decrease. This could lead to an increase in buyers’ willingness to pay and a resurgence in the housing market.
In conclusion, while buying a home has been more expensive than renting for some time now, lower interest rates have relaxed significantly over the past six months leading many Swiss people to believe that interest rates will not rise soon. This combined with a tight rental housing market makes owning a home seem like less of a financial burden compared to renting.
However, sellers may still hold firm on their asking prices and it remains unclear whether this will lead to a surge or stability in sales. Only time will tell how long this trend will last and what impact it will have on Switzerland’s real estate market.
Overall, while buying a home is becoming increasingly expensive due to rising property values and low-interest rates make it more accessible for some people who might consider purchasing one instead of renting anymore.
