So after a lot of Pesach food and an Israeli election — a round of all-out two-day warfare — we now go into an Israeli summer where everyone is waiting to see the movement in the property market.
I had the pleasure to be with my in-laws in Melbourne, Australia, and I extended my stay to give two presentations to the Australian Jewish community. Both events were well-attended and I look forward to a late summer set of events in America to be announced soon.
The first thing I want to say is that being in Israel for Pesach is something I miss every year, and if you haven’t tried Pesach in Israel, come one year. Jerusalem has such a wonderful atmosphere with lots of events going on.
So as summer begins in Israel, what is happening with prices?
- If the banks raise interest rates (something that is constantly discussed and, over the next year or two, might well occur) this can often slow the market.
- In Israel, and Jerusalem in particular, supply keeps on increasing, which leads to over-choice and means prices may have to drop to sell.
- World economic and political uncertainty leads to increased purchasing in Israel.
- War would likely slow down the market as previous data shows and create opportunities for buyers. In a slow market, needy sellers must drop their price (I would say “create opportunity for savvy buyers,” but my opinion might be wrong). Prices wouldn’t wholesale drop but transactions would massively slow.
I personally think prices will remain stable and begin to rise next summer. Demand in the Anglo areas is not in line with relatively affordable residential areas such as Moshavim, Lod, Rechovot, and Rishon. This is because the main Anglo neighborhoods are where a lot of people want to be. Even with increased supply, to find a three-bedroom in Baka, Rechavia, and Shaarei Chesed meeting all requirements is very difficult.
In next week’s article we will discuss financing/mortgages in Israel.
Have a wonderful week!
Heskel Balas coauthored this article.
Ben Levene is sales director of CapitIL Real Estate Agency and is a licensed real-estate agent in Israel. CapitIL is located on King David Street in Jerusalem. Email firstname.lastname@example.org, call 646-781-7745, or visit CapitIL.com to learn more.