The supply of single-family homes in Switzerland has shrunk significantly. Demand is also shifting.

A single-family home in Zurich sells nearly five times faster than one in Ticino, according to the findings of the latest Online Home Market Analysis (OHMA) of online marketplace Homegate and the Swiss Real Estate Institute.

In terms of demand, measured primarily by listing duration, there are clear differences between German-speaking Switzerland and the rest of the country.

The number of single-family homes advertised for sale decreased significantly since the last survey, according to the report published on Tuesday. Despite tighter supply, the average bidding time was only a day less.

Double-Digit Decrease

The supply of single-family homes contracted around 18 percent to just under 50,000 properties during the period under review. The average listing period is some two months and only one day shorter than in the previous period of 61 days. This can be interpreted that not only the supply but also the demand decreased.

Sale After One Month

In all regions of the German-speaking part of Switzerland, the duration of the advertisement has shortened, above all in the north-western part of Switzerland and eastern Switzerland, each down 16 percent. In the Zurich region, sales staff had to wait just one month for a successful sale, with duration falling by one day to 29 days.

At the same time, the listing duration increased in the regions of Geneva, Vaud, and Valais, as well as in Ticino. In the latter, which traditionally has the longest listing period in Switzerland, the tender period grew a further 17 days to 138.

The study also finds differences by price segment. While demand in the higher price segment of 1.5 to 2.5 million Swiss francs is rising almost everywhere, it is falling in the lower price segment between 0.5 to 1 million francs in the majority of regions.

The Bank of Mom and Dad

One possible explanation is that for the majority of new homeowners, their parents helped finance the purchase. As a result, it is primarily wealthier families who can support their children by financing a house thanks to an early draw on their inheritance, who can choose a more desirable property in the higher-priced segment.

The survey is based on data from online listings of single-family homes for the period between July 2021 and June 2022.