Financial expert: House prices expected to decline slightly in 2024 - real estate market in focus

Financial expert: House prices expected to decline slightly in 2024 - real estate market in focus

According to a report from www.blick.ch,

The Swiss real estate market has seen turbulent times. After years of low mortgage interest rates rose rapidly, leading to fears of a major correction in house prices. However, things now seem to have calmed down: mortgage interest rates have reached their peak and are already falling again. House prices also remained stable. On the housing market, however, the shortage of apartments is increasing. Politicians and tenants are equally concerned because there is no calm in sight.

According to experts, slight price declines for houses, especially condominiums, are to be expected in the coming year 2024. This is mainly due to a general slowdown in the market. Mortgage interest rates are expected to continue falling, especially until spring 2024. This could have a positive impact on the real estate market. The Saron mortgage is also expected to become cheaper as the Swiss National Bank's key interest rate decisions are expected to go down. This means that mortgage customers have a good time taking advantage of favorable conditions.

Homeowners are recommended to take out a two- or three-year fixed-rate mortgage to take advantage of current low interest rates. However, the abolition of imputed rental value is unlikely as there is still disagreement and a possible referendum. Rents will continue to rise because too few apartments are being built and the number of empty apartments will continue to decline. The additional costs for tenants are also expected to rise noticeably, especially due to high prices for heating oil, gas and electricity.

In order to keep an eye on interest rates and price corrections, it is advisable to closely monitor developments in the real estate market in 2024 to understand the economic impact on the real estate industry.