Switzerland’s Housing Market Crashes: Huge Decline in House Prices After Interest Rate Hike



Switzerland's housing market crashes as house prices plummet by 10% since 2023, following an interest rate hike. Experts predict further decline in prices. Get the latest updates on Swiss real estate.

Switzerland's house prices have finally started to decline after reaching their peak in 2022, according to a recent study conducted by consulting group Fahrländer Partner (FPRE). The Swiss National Bank has even predicted that prices may continue to fall. The study reveals that since the beginning of 2023, the average value of houses in Switzerland has dropped by 10 percent. In comparison to mid-2022, property prices are now 13.4 percent cheaper.


Switzerland’s Housing Market Crashes: Huge Decline in House Prices After Interest Rate Hike | ogusyis

The decline in prices varied significantly across different regions within Switzerland. The most significant drops were observed in Appenzells (-17.6 percent), Obwalden (-17.3 percent), and Solothurn (-16.5 percent). Even the average costs in Zurich experienced a decline of over 10 percent, while Canton Uri recorded the smallest price correction of -8.4 percent.

FPRE attributes the decrease in prices primarily to higher interest rates on Swiss mortgages. With housing becoming less affordable, it has become a less profitable asset for pension providers, funds, and other companies investing in property. Moreover, a rebalancing based on "fundamental factors" has also contributed to the price corrections. It remains notable that buying a home in Switzerland remains 45 percent more expensive than renting in the long term.

The decline in property prices has garnered attention from the government and national institutions. The Swiss National Bank's latest economic report suggests that the downward trend in prices may persist in the future.

Despite the recent fall in prices, housing in Switzerland is still significantly expensive. FPRE highlights that even with a 10 percent drop, housing is still 154 percent costlier than at the beginning of the century. Swiss cities continue to be rated as having some of the most overpriced homes globally. Additionally, the higher interest rates on Swiss mortgages have made it even more unaffordable for regular individuals to purchase properties. Hence, the decrease in prices does not necessarily equate to increased affordability.

Switzerland’s Housing Market Crashes: Huge Decline in House Prices After Interest Rate Hike

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


Portugal Housing Prices Rise Slows to 7% in Q1: INE Data

According to the National Statistics Institute, Portugal housing prices increased by 7% in the first quarter, marking a slowdown compared to previous quarters.

According to the National Statistics Institute, Portugal housing prices increased by 7% in the first quarter, marking a slowdown compared to previous quarters.

Read more

New Zealand’s Housing Market Sees 4.4% Rise in Median National Rents

Latest data from Tenancy Services reveals a steady increase in national median rent to $600 a week, marking a 4.4% rise compared to the previous year.

Latest data from Tenancy Services reveals a steady increase in national median rent to $600 a week, marking a 4.4% rise compared to the previous year.

Read more

Residential Property Prices in Ireland Surge, Exceeding 2007 Peak

New data from the Central Statistics Office reveals that residential property prices in Ireland have soared, surpassing pre-recession levels by nearly 10%.

New data from the Central Statistics Office reveals that residential property prices in Ireland have soared, surpassing pre-recession levels by nearly 10%.

Read more

U.S. Home Sales Decline Amid Record Prices and Rising Mortgage Rates

U.S. existing home sales continue to drop for the third month in a row due to record-high prices and increasing mortgage rates, but a surge in housing inventory offers hope for potential buyers.

U.S. existing home sales continue to drop for the third month in a row due to record-high prices and increasing mortgage rates, but a surge in housing inventory offers hope for potential buyers.

Read more

Canada’s Housing Market Weakens in May Amid Anticipation of Bank of Canada Interest Rate Cut

The benchmark price of a home in Canada fell 0.2% in May to $714,300, with prices down 2.4% from last year. Will the upcoming interest rate cut provide relief for buyers?

The benchmark price of a home in Canada fell 0.2% in May to $714,300, with prices down 2.4% from last year. Will the upcoming interest rate cut provide relief for buyers?

Read more

Spanish Island and Coast House Prices Return to 2008 Levels

Discover how house prices on Spanish islands and coast have surged, nearing 2008 highs with an average 3.3% rise in May.

Discover how house prices on Spanish islands and coast have surged, nearing 2008 highs with an average 3.3% rise in May.

Read more

Discover Spain's Top Neighborhoods for Foreigners

Discover Spain's top neighborhoods for foreigners and explore the most sought-after locations for property investment. Start your search for the perfect home in Spain today!

Discover Spain\'s top neighborhoods for foreigners and explore the most sought-after locations for property investment. Start your search for the perfect home in Spain today!

Read more

27% of Canadian Renters Ready to Buy | Royal LePage Study

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

Read more

Australia Real Estate Prices Set to Soar in Two-Speed Market

Get the latest forecast on Australia real estate prices, with record growth expected in most markets but varying rates of increase.

Get the latest forecast on Australia real estate prices, with record growth expected in most markets but varying rates of increase.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.