In recent years, buying a home has been more expensive than renting, but that could soon change. The National Bank has recently lowered interest rates, leading to an increase in demand for condominiums. According to consulting firm Wüest Partner (WP), there has been a 7 percent increase in search subscriptions since the middle of last year, indicating that more people are considering buying their own homes.
The relaxed interest rate situation over the past six months has played a significant role in this increase in interest. Following a series of interest rate increases, the Swiss National Bank (SNB) made a “zero decision” for the first time in September, followed by another rate cut in March. This has led to a decrease in mortgage interest rates, making home ownership more attractive.
Another factor contributing to the renewed interest in home ownership is the competitive rental housing market. With high prices and limited availability of properties on the market, many people are turning to homeownership as a more affordable and stable option. However, with condominium prices increasing by 3 percent last year and expected to rise again this year, owning a home remains an expensive proposition for some.
Despite this, with recent interest rate cuts from the National Bank and further potential cuts on the horizon, the cost of owning a home may once again become more affordable than renting. This shift in the housing market is leading sellers to hold firm on their asking prices as buyers may soon find it more affordable to buy than rent. With continued interest rate cuts and increased demand for property ownership, it looks like buying a home may become an attractive option once again.
In conclusion, while buying a home has been pricier than renting for some time now, recent developments such as lower mortgage interest rates and increased competition in the rental market have sparked renewed interest in property ownership among potential buyers. While condominium prices continue to rise at times since 2022 interests rates turnaround