The recent drops in interest rates have been extremely welcome and indeed necessary to keep inflation down and to keep businesses, and people, borrowing in Switzerland.
Thank you to Harriet Kibbe as always for sharing insights with us on the local real estate market.
All the indicators suggest that now is a good time to buy… here are a few reasons why:
Prices:
These have come down considerably since the COVID rush to buy, and there are no forecasts that suggest further drops in listed prices in this area, although the volume of transactions has decreased.
Interest rates:
It is unlikely that the interbank lending rate, or SARON, will drop further, and waiting for it to do so may prove to be a bit too much of a gamble. Now is a good time to lock in a mortgage at 1.45% over 10 years, vastly different from the 3% some homeowners are saddled with from January / February 2024.
And if the above figures don’t seem convincing enough, last but certainly not least, the psychological aspect of selling in the autumn months cannot be underestimated.
End of year slump:
Owners whose properties have been on the market for a while and have not sold are more open to negotiating their asking price, with the tantalising prospect of starting the new year afresh, both on the personal front and the fiscal one.
The market is small in the Geneva area and those of us in the business know that it takes some time for buyers to realize that they will not have a great amount of stock from which to choose their future home and that some concessions will have to be made. I would highly recommend those concessions not being the purchase price or the mortgage rates!
Harriet has lived in the Geneva-Nyon area on and off since 1988, growing up as part of the transient international community. Having moved several times, she has always offered her help to newcomers and people from the international community navigate the local property market. You can connect with her on LinkedIn here and feel free to ask any questions you might have.
Read some of Harriet’s past articles here on how to manage your property or the local trends in construction. 
This blog provides an insightful look into how La Rentrée shaped the property market this year. The post highlights key trends and shifts in demand, offering a clear view of how seasonal changes and economic factors influenced buying and selling behaviors. It’s interesting to see how this period often marks a fresh start in the market, and the blog does a great job of outlining how the property sector responded to evolving buyer needs and market conditions. A valuable read for anyone looking to understand the market dynamics post-summer.