Demand is growing faster than supply – especially in certain regions. The Corona crisis could change that.
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New single-family houses are in greater demand than ever: a visit to a construction site in Schinznach in the canton of Aargau.
Photo: Keystone
72 days – as short as possible, single-family houses were on the market in 2019. That creates a new one Evaluation of all important Swiss online marketplaces through the real estate portal Homegate and the Swiss Real Estate Institute at the Zurich University of Economics. This value has never been so low. Since the start of the survey five years ago, the average tendering time for single-family homes has decreased by almost a third.
The so-called insertion time was reduced, in some cases significantly, compared to the previous year in almost all regions examined. Exceptions are Zurich and Ticino, where single-family houses were advertised for 4 or 15 days longer than in 2018. In Zurich, demand fell slightly, and massively more properties were offered in Ticino.
It is precisely these two areas in which the market has the greatest differences. While houses in the Zurich region continue to find buyers the fastest (on average 52 days), the marketing time in Ticino is more than twice as long (107 days). Objects tend to be gone faster in German-speaking Switzerland than in other parts of the country.
In recent years, an increase in the offer has been registered at the same time as the tendering time has decreased. It was different in 2019. The number of single-family homes advertised for sale decreased by 2.9 percent to a good 33,000 properties. The drop in supply was most pronounced at just under 10 percent in the regions of Eastern and Central Switzerland and Geneva.
The fact that houses are finding buyers more and more quickly is not so much a result of a shortage of supply, but rather of the steadily growing demand. «In 2019, the economic forecasts were solid, and record interest rates were still expected. Accordingly, the demand for home ownership remained high, »explains Peter Ilg from the Swiss Real Estate Institute.
“We expect demand to decrease this year.”
Ilg and his colleagues observed a marked reduction in the oversupply, especially in the top price segment (over CHF 2.5 million) and in single-family houses with eight or more rooms.
In 2020, however, the expert expects demand to decline. «Due to the uncertainty caused by the Corona crisis, most households will put a little delay on buying a home. So the sellers have to wait a little longer until they can sell their property, »says Ilg. “When the crisis calms down in the summer, we don’t expect prices on the home market to drop.”
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