Israel's housing market is overheating

11.10.2010 19:30
Demand for residential real estate in the country has grown considerably in August, while the volume of supply in the market fell to its lowest level in several years. In this situation, the Israeli housing can once again begin to rise in price.

In August, the number of transactions with residential facilities in the country increased by 13% compared with July. In the segment of new construction demand rose by 38%. In central Israel, this figure rose to 68%, according to Globes, referring to the Central Bureau of Statistics.

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Volumes of new supply in August fell by 2.2% from the previous month to 9,370 objects. For comparison, in II quarter has been put up for sale 13 thousand objects.

Despite the promise of Housing Minister Ariel Atias to increase supply through the provision of additional sites under construction, the market continues to experience a shortage of facilities. This leads to higher prices.

Recall that in June the cost of Israeli real estate rose by 2,2%, and for the II quarter - by 3.2%. With respect to the II quarter of 2009 grew by 12.1%, which made Israel to fifth place in the world in the rate of house inflation. Apparently, government measures to stabilize prices on the Israeli housing in the early years was not enough, and the authorities need to undertake new efforts to "cool" market.
Content tags: Overseas property Housing
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