Houses in Switzerland
Related article: The most expensive in the world for its luxury apartment shocking!According to experts, the escalation in housing prices over the years was due to low unemployment and consumer prosperity in the Confederacy. If these trends continue, the latter trait will be passed back in the second quarter. A quarter of the population lives in regions where housing prices "overheated." Particularly rapidly becoming more expensive facilities in Geneva and Zurich. According to Reuters, the list of regions that already appear on Davos, Vevey, Morges, Nyon and Zug, recently added three more municipalities.
In April, the Swiss central bank once again warned about the threat of market participants and urged the country's banks to restrict lending. The Organization for Economic Cooperation and Development and the Financial Stability Board is also convinced that the Swiss mortgage lending standards do not meet the dangers of the situation. Low mortgage rates have led to high indebtedness of the population, growth in sales volumes and prices. In March 2012 the prices of apartments in condominiums rose by 6.3% year on year, while single-family homes in the same period rose by 4.6%.
Taught by bitter experience of the 90s, when the "collapse" of the housing bubble has led to a banking crisis, the authorities are trying to avoid it. To keep investors from buying the Swiss franc and the housing, the central bank lowers the price of the currency. But four years the average cost of homes in the Confederacy, adjusted for inflation, grew by 21%, as in 1984 and 1988, against the background of the previous bubble. Demand for housing continues unabated, and the bladder can hold out for a while. But if prices will rise for several years in succession, the economic consequences will be more severe, and the period of adjustment of prices and market recovery greatly lengthened.