House prices resist interest rates

The rise in interest rates hardly weighed on house prices in the 1st quarter. If those of single-family homes have marked a rare pause in their escalation for nearly ten years, those of single-storey properties have continued to rise.

Inflation reached 2.4% sequentially for apartments, while that of villas fell marginally by 0.6%, according to the periodic index of transaction prices published Wednesday by Raiffeisen.

Interest rate forecasts point to less momentum going forward. “The collapse of prices, as we sometimes observe abroad, remains however improbable, the offer being too limited in Switzerland”, warns Francis Schwartz, economist at Raiffeisen Switzerland.

The Lake Geneva region has posted the strongest increase in property prices per floor over the last twelve months, with a jump of 8.7%. The prize for single-family homes goes to the rest of western Switzerland, with a jump of 9.4%.

/ATS

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