Insurance Property buyers are paying less inflated prices for homes
The days when property owners could demand significantly inflated prices when selling are over. This extends the time it takes to sell.
09.10.2024, 08:15
SDA
Fewer and fewer prospective property buyers are willing to invest additional equity in a property that is above market value. This is the result of an analysis published on Wednesday by Helvetia and Moneypark. The insurance company and the real estate specialist examined over 7,000 real estate financing transactions for the years 2021 to 2024.
According to the analysis, one in five properties is still being sold above market value. During the pandemic, one in four homes was sold at an inflated price.
On average, the overpayment amounts to around 7 percent of the estimated value. For a property with a market value of one million francs, this means a premium of around 70,000 francs.
Location is decisive
Because buyers are now increasingly holding back, the time it takes to sell is getting longer. According to Moneypark, two years ago it still took an average of five months to close a deal. Today it is seven. "Not every property is going like hot cakes anymore," commented Moneypark CEO Lukas Vogt.
Depending on the location, however, sales are faster. In attractive locations, one in four properties is sold within around three months. In less sought-after locations, the sales period can be extended to around eight months.
