Big differences by region: Single-family home sellers need to be more patient

class=”sc-29f61514-0 icZBHN”>

Approximately 55,700 single-family homes were advertised from July 1, 2022 to June 30, 2023, representing an increase of 11 percent compared to the previous year. This emerges from the “Online Home Market Analysis” study published on Thursday by Homegate and ImmoScout24, in collaboration with the Swiss Real Estate Institute (SwissREI) and the Swiss Homeowners Association. Advertisements from many real estate portals were evaluated.

Due to the slightly higher supply of detached houses, the average advertising period increased from 60 days to 66 days. Therefore, sellers need to be a little more patient until they sell their home.

The differences between regions in Switzerland are huge: By far the longest for-sale listings have been placed in the canton of Ticino. The advertising period there is 136 days and therefore almost unchanged compared to the same period last year.

By comparison, sellers in Zurich and central Switzerland only have to wait 42 and 46 days respectively to find a new buyer for their home. But a year ago, homes there were selling out a quarter faster.

Almost no change in French-speaking Switzerland

In French-speaking Switzerland, the duration of advertisements remained almost unchanged. However, since it is 78 days in the Vaud/Valais region and 64 days in Geneva, home sellers here have to wait longer for the sale than the German-speaking Swiss.

The study’s authors conclude that longer wait times result in lower demand for single-family homes. The drop in demand is said to be particularly pronounced in financially weak suburban communities and agglomerations. Since the share of debt financing is relatively high here, buyers have begun to act more cautiously due to increasing real estate interest rates.

Overall the market is in a solid position. Even significant interest rate hikes by the Swiss National Bank (SNB) did not significantly reduce demand.

Will interest rates peak soon?

“While house prices in similar countries such as Sweden have already noticeably improved due to continued interest rate increases, there are still no signs of weakening in demand for detached houses in Switzerland,” said Peter Ilg. The words of the Swiss Real Estate Institute on this subject are quoted.

However, further development of demand depends on the SNB’s future interest rate policy and when the interest rate increase cycle will be completed. Ilg assumes that the peak interest rate will be reached soon, as he said when asked. The SNB’s decision not to raise further rates on report day should further support demand and calm the market overall. (SDA)

Source : Blick