Swiss National Bank experts said the country’s real estate market is cooling after several years of growth.

They noted that the risk of a sharper correction still remains. Mortgage origination growth has remained stable in recent months, with all signs pointing to a slowdown in residential property prices.

Housing affordability has particularly deteriorated due to rising interest rates as the Bank of Switzerland tightens monetary policy to curb inflation. A March report from Goldman Sachs said that the current housing construction pattern in Switzerland indicates a likely price drop of 6%. The change is described as “moderate” compared with the double-digit declines seen in some other countries such as Sweden, New Zealand and Canada.

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