News Brief 5/11/2011, Iyar 7, 5771
Government's Misleading Housing Data
The figures released by the Treasury according to which the price of housing has dropped by one percent are inaccurate, said Association of Contractors and Builders President Nisim Bublil, speaking with the “Chamesh B'Erev” television show. In fact, he said, prices are continuing to rise, as demonstrated by figures released Wednesday, which showed a 12% jump in housing prices
compared to 2010.
The government wishes to avoid lowering prices in order to keep making money off housing sales, he accused. “About 60% of the profits from sales go to the state,” he said, “The government doesn't want to give that up.”
Bublil believes that the sharp increase in price is not indicative of a “housing bubble.” The problem is a housing shortage, he said, “If we build more quickly we'll meet demand, and the prices will drop.”