Real estate prices remain high due to low inventory

According to the Marker, the business magazine of Ha’aretz daily news, the low inventory of new housing is continuing cause prices of the inventory of existing homes high.

A major factor in the reduced inventory is related to the availability of land that can be released for development and the high costs involved.  The Land Authority indicates that the limitationof available land is adding to inflation of prices in the existing sector as well as prices for homes under construction.

A delicate balance between state inteference and private enterprise and the Bank of Israel is required to keep interest rates affordable and yet not so low as to increase inflation.

According to CBS the average price increase in the cost of Israeli apartments last year was 20%.

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