According to Ynet news several months ago realtors were predicting a 10% drop in real estate prices next year. Recent conversations with a number of strong producing real estate agents reveal the stalemate in apartment prices is due to a public expectation that prices will drop. Seller’s in expectation of a normal rise in prices are holding on, unwilling to admit the market has softened.
Those who must sell are selling at roughly 5% less than the asking prices of 2010. Many believe as seller’s are willing to make concessions that the market will move freely again.
Area, neighborhood and even street can see rises or dips depending on popularity. Some periphery areas simply rose too high too quickly, whereas landlocked locations in Tel Aviv and Jerusalem still command strong prices. Beer Sheva saw a dramatic value rise, but is cooling off slightly.