This week Israel’s business publication, Globes posted their recent sales column which confirmed the “word on the street” among real estate agents and business lawyers, that 2nd hand property inventory is high and what’s selling is the lower price market, but mainly in strong areas, not periphery.
It’s this author’s experience that while in 2010 sellers were getting close to asking. Now that asking prices are not changing, actual sales closings are about 10-15% lower in the mid-range market.
The real estate truth that the high-end and luxury market slows down first is evident here, with higher priced homes at and over the 2,500,000 NIS mark are not moving in either Jerusalem or Tel Aviv where inventory in these price ranges is the largest in the country. Closing prices cited in the Jerusalem area are mainly in the Rehavia area at a surprising 1,500,000-1,700,000. Rehavia traditionally a safe investment.
Tel Aviv agents also remarked at a slowdown with properties in the ‘golden corridor’ of Ayalon to seacoast, from Rothschild to the Yarkon River had lost about 10-15% of value compared to spring 2 years ago.