Sunday, October 9, 2011

Swiss on the Bubble; Seem familiar?

This article provides an update on the current Swiss housing market. Interest rates are at a record low, those who couldn't afford a home before now can, housing prices are consistently rising, and the overall demand for homes has never been higher. Over the last two years certain housing prices have jumped an incredible 14% and people are starting to struggle to find affordable homes despite their anxiousness to buy. An increase in immigration, sparked by Euro-zone crises, has also lead to increased housing prices. Of all this information, the scariest quote comes from Janwillem Acket, a chief economist for Julius Baer Group, Ltd. who says "People who shouldn’t be borrowing are now seriously considering entering the housing market." As we all know, this can be the biggest cause of long-term problems when it comes to loans and debt.

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