(photo credit: Courtesy)
It's been nearly four months since what we might call a normal real estate
market has been in play in Israel. What do I mean by normal? A real
estate market where the normal market forces of "supply and demand",
dictate the buying and selling activity, prices, etc. So what’s next for Israel’s real estate market?
Recent extenuating circumstances
Events in Israel and around the world over the course of the last four
months have kept a lot of potential buyers out of the Israel real estate
market. Many who were considering a property purchase, watched
events unfold from the sidelines with bated breath. In Mid-July and throughout all of
August, the tent protests which swept across Israel, had a dampening
effect on potential buyer plans, then September rolled around and many
people both inside and outside of Israel were pre-occupied with the
Palestinian threat to seek statehood recognition at the UN. No sooner
had that whole crisis passed when it was time for Rosh Hashana, Yom
Kippur and the recently concluded Succot holidays.
What happened to the market during the quiet period?
During this rather extraordinary period of time, there has been a great
deal of speculation in the press and lots of discussion by industry
leaders and government officials about the direction real estate prices
in Israel may take. The discussions and public discourse has included
extensive review and debate in the Knesset regarding the government’s
role in keeping real estate ownership within reach of as many people as
While sales volume has definitely dropped significantly during this
period of time, prices do not seem to have dropped significantly.
Actually, a rather surprising statistic was just recently released by
the Central Bureau of Statistics stating that real estate prices
in August of this year were actually up 0.8 percent over the previous month.
So what's the real story with the Israel Real Estate market at this
point? Will prices drop dramatically any time soon? Obviously nobody
can answer this question with certainty. It seems unlikely though that
whatever happens will be extreme as there is just too much demand for
real estate in the world’s only Jewish state. My guess is many of those
who have been on the sidelines will cautiously resume their property
search and that it won't be long before the "market forces" of supply
and demand will once again dictate prices.
Lyle Plocher is the Director of Buy Property In Israel and can be reached by email at email@example.com.
Buy Property in Israel can assist you with all of your Israel Real Estate needs.
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