The real estate principle of prices reaching levels beyond the reach of local buyers may have affected the slight drop in prices in March and April. Real Estate prices can also be affected by outside investors which can prop up prices for locals. The softening of the British Sterling and EU currencies may also have affected the willingness of foreign investors.
Although there is still a significant shortage of apartments, prices may soften to attract and accomodate new buyers. Some speculate the escalation of prices that has caused Israel to be the third strongest real estate market in the world is creating a bubble. Because of the stringency of obtaining a mortagae in Israel both in the past and present there is no banking crisis waiting to happen.
Building and economic pundits beleive the apartment shortages created over the last decade will continue to keep prices stable.