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Israel Real Estate Market On It’s Way Up

According to an article in today’s Globes,  buyers in Israel’s real estate market will not be able to hold off purchasing a home for much longer.  Since the summer,  many buyers have  been sitting on the fence – waiting to see if government interventions and economic policies push down the property prices in Israel.  They have also been waiting to see if the perceived real-estate-bubble will burst here like it did in the United States. The reality is, however, that there is no real estate bubble in Israel  (as I explained in my first blog on this site). The slow down in the market is a factor of the cold, grey winter season as well as a temporary reaction to the social protests of the summer. According to Ayelet Nir, chief economist of the investment firm Psagot, buyers are holding their breath and thereby stalling the real estate market temporarily.  She states, however, that they will not be able to stall the market for much longer. Experts agree that buyers will have no choice but to jump back into the market because the slow development of new projects in Israel does not meet the strong need for new housing by young couples and families. This is certainly true in Jerusalem where the low inventory is insufficient to meet the continuous demand by local and foreign buyers. In returning to the market en mass after a slow winter, buyers will consequently create another price-increase in the market. My advice for buyers today is to make a move on a purchase during this slow month of February before the market wakes up for the spring.

 

Ilana Nelson