Prices lower in Q3 except Jerusalem

Jerusalem maintained its status as the country’s now fastest growing city with a rise in housing prices of 2% while other communities such as Tel Aviv fell 6%, and Beer Sheva fell 3% in the third quarter.
It is this writer’s conviction that prices will continue to rise in the periphery as prices and communities such as Maaleh Adumim and Modiin which have seen close to a 12% increase in the last year. Major metropolitan areas will probably see a continued slowdown in the sales and rental markets.
Although Tel Aviv prices are expected to drop an additional 4%, rental prices continue to rise making the central and northern neighborhoods where rents are the highest an attractive investment. Tel Aviv being a “landlocked” with little area for development, where the trend is to tear down and rebuild where existing buildings stand may experience a temporary drop in existing prices that will exceed the present drop.
According to Ynet News the questioned dilemma is; “we expect rents to raise so at the end of the day, flat purchasers have a dilemma on their hands: should they wait for the big price drop in the future and pay higher rent today of should they take advantage of the low interest rate on mortgages?”
These present trends are caused by uncertainty in the world marketplace as well as steps taken by the Israeli government to restrict thepast  rapid rise in prices.
This author foresees growth in Israel with the secular population at well past replacement rate at 3.6 children per couple. These trends are temporary as the housing needed to fulfill these families will create demand and raise prices.


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