Real estate prices rose more rapidly towards the end of 2023
Published: Wednesday, Jan 31st 2024, 08:20
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Owner-occupied housing has become more expensive again in Switzerland in 2023. After only a slight increase in the first half of the year, prices for condominiums and single-family homes rose again more significantly towards the end of the year.
Condominiums recorded a price increase of 1.6 percent in the second half of the year, while single-family homes rose by as much as 4.5 percent, as mortgage broker Moneypark reported on Wednesday. The price increases in the fourth quarter were even higher than in the third.
In geographical terms, prices for single-family homes in French-speaking Switzerland rose slightly more sharply in the second half of the year than in German-speaking Switzerland, while the reverse was true for condominiums.
Saron mortgages continue to lose popularity
As far as the financing of purchased residential properties is concerned, demand for money market (Saron) mortgages continued to fall in the second half of the year, whereas short-term mortgages increased in popularity.
After the SNB's last key interest rate hike for the time being in June 2023, the price difference between Saron and fixed-rate mortgages continued to decrease, Moneypark explains this trend. In October 2023, the tide even turned in favor of fixed-rate mortgages and they have been cheaper since then.
The popularity of fixed-rate mortgages with a term of 10 years also increased again in the second half of the year. Due to the small interest rate differences between the terms, 10-year mortgages could soon take the top spot again, according to Moneypark.
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