Rising home prices continue to increase hardship for buyers

Housing sales slumped 6% in October and November relative to the third quarter, though demand remained high.

By
January 7, 2014 23:13
1 minute read.
Realtor Racheli Brizel says the company is very interested in building apartments for young couples

Tirat Carmel house 521. (photo credit: Adi Benzaken)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Home prices have risen a nominal 8.6 percent (6.7% in real terms) over the past 12 months, leading to a decline in Bank Hapoalim’s home buyer’s index. The index fell 0.8% in November to 124.3, a score set relative to 100 at the start of 1996. That figure is down nearly 8 points from a year earlier, representing a continued trend of increasing hardship for home buyers.

The index takes into account the price of housing, unemployment, average wages and the cost of monthly loan payments, as influenced by the average interest rate for mortgages.

Be the first to know - Join our Facebook page.


According to Bank Hapoalim, housing sales slumped 6% in October and November relative to the third quarter, though demand remained high.

Labor MK Itzik Shmuli on Tuesday accused the Bank of Israel of fueling high housing prices by keeping the interest rate low, making the market attractive for investors.

In response, Bank of Israel Governor Karnit Flug said the bank had installed new taxes and restrictions to make the market more accessible to new buyers and dampen the appeal of investors.

Despite the repercussions for the housing market, she said, the low interest rates were necessary to aid the overall economy.

“If we were to leave the interest rate high, the damage to the economy as a whole, to exports and to employment, would have been much more serious,” Flug said. “Therefore, the measures in the housing market are intended to reduce the effects of the interest rate on the risks in the housing market.”

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS