The days when property owners could demand significantly inflated prices when selling are over. This extends the sales time. (symbol image)
Keystone
The days when property owners could demand significantly inflated prices when selling are over. This extends the sales time.
Fewer and fewer people interested in real estate are willing to invest additional equity in a property that is above market value. This emerges from an evaluation by Helvetia and Moneypark published on Wednesday. The insurance company and the real estate specialist examined over 7,000 real estate financings from 2021 to 2024.
According to the analysis, one in five properties is currently being sold above market value. During the pandemic, one in four houses was sold at an inflated price.
The overpayment is on average around 7 percent of the estimated value. For a property with a market value of one million francs, this means a surcharge of around 70,000 francs.
Location is crucial
Because buyers are now holding back more and more, the sales time is getting longer. Two years ago, according to Moneypark, it took an average of five months to complete the deal. Today there are seven. “Not every property goes away like a hot cake anymore,” commented Moneypark boss Lukas Vogt.
Depending on the location, sales can be quicker. One in four properties in attractive locations is sold within around three months. In less sought-after locations, the sales period can be extended to around eight months.
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