For the last years I've been looking to buy a house or an apartment in Bern or nearby.
What I've found out is that the market is relatively thin. Apparently the number of transaction is decreasing. There are quite a few new objects especially around Bern which won't sell. It goes like this: the apartment is being advertised, no sell, a few months later there is a small price reduction, around 1-2%. And so on.

This is surprising because in Bern the house prices aren't by far as high as in Zurich or Geneva. Besides Bern employs well-paid Beamten with safe jobs. So it should be a lot of buying power.

Another factor is that most people don't look at price, but at the mortgage monthly rate and if their income allows them to get the mortgage. The price is no deterrent.

The big question now is what will happen when the interest rates will start rising. I suspect a significant price correction is not out of question within the next couple of years.

What do you think?

If the correction means price reduction, I really doubt that. Unless there is substantially interest rate hike, then maybe...