Daily Israel Report
19:48
Reported

News Brief

  7/25/2011, Tammuz 23, 5771

Economists: Housing Prices to Drop More


Economists said Monday that the Bank of Israel's decision not to change interest rates next month indicated that it was not overly concerned with the current rate of increase of property values. Economists for the Meitava financial group said that while prices have been going up over the past year – about 13.7% on average – the rate has slowed considerably.

The slowdown in the rise of home prices was due to various steps the Bank of Israel and the Treasury have taken recently, including increasing the number of housing starts and changes in tax rates on investment real estate. Further softening of prices in the real estate market are likely over the coming year, the economists said.