Israeli housing prices expected to continue to rise
Short supply of new units and high demand will outweigh increases in interest rates, most observers say.
Israel's housing market has been in a strange situation in recent months. Far fewer transactions have been recorded, but prices have risen dramatically.
As of the 12-month period ending September 2022, housing prices increased by 19%. Meanwhile, a review by the Finance Ministry, published earlier this month, shows that in Q2/2022, 27,000 units were purchased on the open market — a 19% drop from the same period in 2021 and the lowest level since Q3/2020.
Buyers are sitting on the sidelines waiting for prices to fall after the Bank of Israel's interest rate hikes, as well hoping that some real estate investors will soon realize their profits by putting their assets on the market, adding to supply.
However, on the opposite side, other buyers want to close a deal right away, fearing future housing price increases if a comprehensive government plan for the sector is not implemented soon.
