News Brief 5/22/2011, Iyar 18, 5771
Poll: Housing Prices to Calm Down
The long march north of Israeli housing prices is set to come to an end, senior members of the real estate profession say. A poll by Deloitte shows that nearly a third of real estate professionals believe that housing prices will fall next year by as much as 10% - with 7% seeing drops of as much as 20% - while 39% see prices remaining stable. Only 23% believe prices will rise further.
One major reason for this, the vast majority of those polled say, is due to the efforts by the government and the Bank of Israel to cool off the housing market. 86% of those polled say that recent regulatory changes have had their desired effect, and have calmed demand. With that, 60% of those polled said that current prices reflected real demand, while 40% felt that prices were inflated due to “bubble” demand, and that prices would fall as regulations popped the bubble.