Prices for single family homes in Switzerland recorded their first quarterly drop since before the pandemic, raising the prospects that a market that has boomed for decades may be turning.
(Bloomberg) — Prices for single family homes in Switzerland recorded their first quarterly drop since before the pandemic, raising the prospects that a market that has boomed for decades may be turning.
Transaction prices declined 0.18% in the final three months of 2022, data compiled by Zurich-based real-estate consulting firm Wuest Partner shows. The last time they dropped was in the third quarter of 2019. They’ve risen 5.5% over the past year and 113% over the past two decades.
“The market environment suggests that this is more than a seasonal effect,” Robert Weinert, head of real-estate monitoring at Wuest, told Swiss newspaper Blick.
The Swiss National Bank has long been concerned about the high prices in the country’s property market. In its latest financial stability report, the central bank warned of “stretched valuations,” and estimated housing prices were 10% to 35% above the level explainable by fundamental factors.
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