(Bloomberg) -- The Swiss National Bank said there are signs the country’s property market is cooling after years of growth, but noted there are still risks of a sharper correction.

“Mortgage growth has remained largely stable in recent months, whereas there are signs of a slowdown in residential real estate prices,” it said Thursday. “The vulnerabilities on the mortgage and real estate markets persist.”

Stretched affordability is being exacerbated by rising interest rates as the SNB tightens monetary policy to tame inflation. In a report this month, Goldman Sachs said its housing model predicts a 6% peak-to-trough decline in Swiss home prices. It described that change as “moderate” compared with the double-digit drops it sees in some other countries, such as Sweden, New Zealand and Canada.

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