Israelis snapped up new homes during August.
Demand for new homes jumped 13% in August 2010 compared with the previous month of July , while sales of new homes soared 38% to the record levels that were last seen in May, the Central Bureau of Statistics reported .
The inventory of new homes at the present rate will only last for 7 months.The lowest the country has seen for many years.
Monday, October 11, 2010
Deutsche Bank blames low rates for house price rises
Deutsche Bank has blamed low interest rates on the Israeli housing bubble. The bank insists that mortgages are the main growth driver in the housing market and that interest rates have driven prices higher, not supply constraints.Other sources not connected to the bank
Deutsche Bank said, "Our analysis shows that the decline in mortgage rates to all-time lows of 2.4% (vs. 5.5% average prior to 2008) has been the main factor driving housing prices higher rather than lack of supply. Prices started to rally in mid-2008 exactly at the time that interest rates declined and prime rate floating mortgages increased in popularity.
Bank of Israel Governor Prof. Stanley Fischer cut interest rates to an historical low as a result of the global economic crisis and credit crunch in the final quarter of 2008. Harverd observed, "Not by coincidence, this was the starting point for the rally in apartment prices."
Deutsche Bank reported that since the start of 2009 the median apartment price has risen 28% to NIS 979,000 or $252,000.
Deutsche Bank said, "Our analysis shows that the decline in mortgage rates to all-time lows of 2.4% (vs. 5.5% average prior to 2008) has been the main factor driving housing prices higher rather than lack of supply. Prices started to rally in mid-2008 exactly at the time that interest rates declined and prime rate floating mortgages increased in popularity.
Bank of Israel Governor Prof. Stanley Fischer cut interest rates to an historical low as a result of the global economic crisis and credit crunch in the final quarter of 2008. Harverd observed, "Not by coincidence, this was the starting point for the rally in apartment prices."
Deutsche Bank reported that since the start of 2009 the median apartment price has risen 28% to NIS 979,000 or $252,000.
Housing Ministry markets land for another 2,985 homes in 21 cities and town nationwide
An especially large amount of land will be marketed in the Southern District, which the Housing Ministry says "has recently seen especially heavy demand".
Once again, most of the land that will be marketed is in the periphery and not in demand areas. Land for 117 apartments will be marketed in Yavne, land for 321 apartments in Modi'in, a lot for 17 apartments in Kfar Saba, a lot for 11 apartments in Tel Aviv's Neve Shalom neighborhood.Furthermore, land for 204 apartments will be marketed in the Haifa District.
Lots for 235 apartments will be marketed in Beersheva. Altogether, land for 1,461 apartments will be marketed in the Southern District, about half the total land in the present program.
Lots for 895 apartments will be marketed in the Northern District, including lots for 678 apartments in Nazareth.
Once again, most of the land that will be marketed is in the periphery and not in demand areas. Land for 117 apartments will be marketed in Yavne, land for 321 apartments in Modi'in, a lot for 17 apartments in Kfar Saba, a lot for 11 apartments in Tel Aviv's Neve Shalom neighborhood.Furthermore, land for 204 apartments will be marketed in the Haifa District.
Lots for 235 apartments will be marketed in Beersheva. Altogether, land for 1,461 apartments will be marketed in the Southern District, about half the total land in the present program.
Lots for 895 apartments will be marketed in the Northern District, including lots for 678 apartments in Nazareth.
Despite the rise in housing prices, contractors are in no rush to build.
Despite the rise in housing prices and belying repeated promises by Minister of Housing and Construction Ariel Atias that he is going to flood the housing market, contractors are in no rush to build.
The Central Bureau of Statistics reported that building starts fell in the second quarter of 2010.
Housing starts had risen in the first quarter of 2010 but this was the only such rise in the past seven quarters.
There were 8,959 building starts in the second quarter of 2010, 5.5% down from the preceding quarter
The Central Bureau of Statistics reported that building starts fell in the second quarter of 2010.
Housing starts had risen in the first quarter of 2010 but this was the only such rise in the past seven quarters.
There were 8,959 building starts in the second quarter of 2010, 5.5% down from the preceding quarter
Demand for homes in the periphery surges
House prices in TA and J'lem stay high, periphery starts to catch up.
Cities and areas in outlying places in Israel are continuing to attract the interest of home buyers as Israel real estate prices in traditional demand areas such as Jerusalem and Tel Aviv have been sky high and the supply of new homes has been narrowing.
Demand for the purchase of new homes in the southern region of the country surged by nearly 50 percent from the beginning of the year until the end of July compared with the same period last year. Another popular area of interest by home buyers was the Haifa region where demand for the purchase of new dwellings has risen by 21 percent in the first seven months of the year compared with the corresponding period of 2009. In the central region, quantity demanded of new dwellings sold grew by 3.5 percent in the reported period.
Against thistrend though, the least popular area for purchases of new homes was Judea and Samaria, where demand plunged by 67 percent in the January to July period compared with the same months last year.
Popular cities for homebuyers include Petah Tikva ,Ashkelon and Yavneh among others..
Demand for the purchase of new apartments on a national level continued to grow and increased by 1 percent in the first seven months of the year compared with the same period in 2009, according to the survey published by Israel’s Central Bureau of Statistics and the Housing and Construction Ministry.
Trend figures show that the supply of new homes in private construction for sale has been falling steadily over the past four years ,(whilst demand is increasing)from a level of around 14,000 homes at the beginning of 2006 to just over 9,000 at the end of July 2010.This is definitelly not helping is tabilizing prices.
Cities and areas in outlying places in Israel are continuing to attract the interest of home buyers as Israel real estate prices in traditional demand areas such as Jerusalem and Tel Aviv have been sky high and the supply of new homes has been narrowing.
Demand for the purchase of new homes in the southern region of the country surged by nearly 50 percent from the beginning of the year until the end of July compared with the same period last year. Another popular area of interest by home buyers was the Haifa region where demand for the purchase of new dwellings has risen by 21 percent in the first seven months of the year compared with the corresponding period of 2009. In the central region, quantity demanded of new dwellings sold grew by 3.5 percent in the reported period.
Against thistrend though, the least popular area for purchases of new homes was Judea and Samaria, where demand plunged by 67 percent in the January to July period compared with the same months last year.
Popular cities for homebuyers include Petah Tikva ,Ashkelon and Yavneh among others..
Demand for the purchase of new apartments on a national level continued to grow and increased by 1 percent in the first seven months of the year compared with the same period in 2009, according to the survey published by Israel’s Central Bureau of Statistics and the Housing and Construction Ministry.
Trend figures show that the supply of new homes in private construction for sale has been falling steadily over the past four years ,(whilst demand is increasing)from a level of around 14,000 homes at the beginning of 2006 to just over 9,000 at the end of July 2010.This is definitelly not helping is tabilizing prices.
Israel Ministry of Housing promotes building
Over the past nine months, the Ministry of Housing and Construction and the
Israel Land Administration (ILA) have run an aggressive media campaign to
flood the market with land zoned for thousands of new apartments in order to
lower housing prices. However, words are one thing; deeds are another.
The plan called to release land so that around 70,000 units would be built in order
to comply with the heavy demand (specially in the center of the country)
An investigation by a leading financial newspaper in Israel found that no
tenders were ever published for land for hundreds of apartments. Neither the
Israel land Authority nor the Ministry of Housing published the tenders, or
they published tenders for only a very small fraction of the promised homes.
Israel Land Administration (ILA) have run an aggressive media campaign to
flood the market with land zoned for thousands of new apartments in order to
lower housing prices. However, words are one thing; deeds are another.
The plan called to release land so that around 70,000 units would be built in order
to comply with the heavy demand (specially in the center of the country)
An investigation by a leading financial newspaper in Israel found that no
tenders were ever published for land for hundreds of apartments. Neither the
Israel land Authority nor the Ministry of Housing published the tenders, or
they published tenders for only a very small fraction of the promised homes.
Eyes on the floor .....Tips for renovating before selling.
Beyond location, price and size, a potential buyer looks at three parameters: floors, bathrooms and the kitchen, says interior designer Ariella Shneor, who also heads the Association of Interior Design Architects in Israel. "These three parameters translate in the eye of the buyer into expensive renovations".
Thursday, June 24, 2010
Government assitance to young couples and 1st time home buyers
The Housing Minister is proposing to the Knesset to introduce a cut on VAT (value added tax) currently 16% and a 20% mortgage refund over a 20 year span to young couples and 1st home buyers in the periphery.
Although the above measures will help the weakest sector of the population acquire their 1st home it does not provide a full solution to the continued increases in house prices mainly due to the fact that land prices sold by the Israel Lands authority to contractors remain very high whilst housing starts are very low compared to the actual demand.
Although the above measures will help the weakest sector of the population acquire their 1st home it does not provide a full solution to the continued increases in house prices mainly due to the fact that land prices sold by the Israel Lands authority to contractors remain very high whilst housing starts are very low compared to the actual demand.
Women decide what apartment to buy
According to a survey conducted by the Israel Building Center 78 % are behind the decision regarding buying apartments in new projetcs and 84% in purchasing homes in general.
88% are involved in the interior design aspects.
Now we know who dominates this industry.
88% are involved in the interior design aspects.
Now we know who dominates this industry.
Monday, May 3, 2010
Award to Bet Shemesh Mayor
The Interior Minstery,presented an award to Mayor Moshe Aboutbul for proper management of Bet Shemesh for 2009.
This is the first time that a Bet Shemesh mayor has ever won the award. Among efficient masures taken,now each department head to produce a four year work plan, something not done in the past
This is the first time that a Bet Shemesh mayor has ever won the award. Among efficient masures taken,now each department head to produce a four year work plan, something not done in the past
Israel's population stands at 7,509,000 million from the beginning of 2010
The Central Bureau of Statistics reported today. 75.4% of the population is Jewish, 20.3% Arabs, and 4.3% others (immigrants and their families who are not registered as being Jewish by the Ministry of Interior). During 2009, Israel's population grew by 1.8% - a rate of increase that has remained stable since 2003. Over the past year 160,000 babies were born in Israel, while 14,500 new immigrants came to the country - an increase over the 2008 figure of 13,700. Furthermore,the Jewish Agency reported that immigration in 2009 was higher than any of the past 10 years. As housing starts every year cannot match up to the pupulation growth, "the writing is on the wall" as regards to property prices in the country for the years to come. Settlement freeze ,if finally carried out, will add to the demand within the green line.
Wednesday, April 21, 2010
Number of new apartments for sale grows smaller and drops by 22%
The number of new apartments for construction ,by private developers, that remain for sale in Israel is growing smaller and smaller. At the end of February 2010, there were only 8,540 such apartments, a 22% decrease since the end of February 2009.Of the 8,540 above mentioned units, some 8,180 are currently being built, and 360 were completed in the last 15 months, according to the Central Bureau of Statistics (CBS).Some 1,530 new apartments were sold to the public throughout the country in February 2010, a 14% increase from January of the same year.
Mortgages jump 56%
The real estate market boom in the past two years has resulted in a 56% increase in the value of new mortgages. At the same time, the average apartment price has risen 30%, the Bank of Israel reported today.New mortgages totaled NIS 65 billion in 2009, up from NIS 41 billion in 2008.The figures indicate that the low prevailing interest rate caused borrowers to prefer variable rate mortgages, which accounted for 77% of all new mortgages in February 2009, an all-time high. Later during the year, as expectations grew that the interest rate would be raised, the proportion of variable rate mortgages fell to 51% of all mortgages."Household debt relative to disposable income was unchanged at 60% in
Israel, lower than in other countries, such as the US, the UK, and eurozone
countries," quoted the Bank.
Israel, lower than in other countries, such as the US, the UK, and eurozone
countries," quoted the Bank.
Sunday, March 21, 2010
Home prices continue rise
The average price of a four-room apartment crossed the NIS 1 million threshold for the first time.
Belying commitments by Minister of Housing and Construction Ariel Atias to reduce apartment prices in 2010, prices rose at beginning of the year.
Apartment prices rose 1.6% in January, the Central Bureau of Statistics (CBS)reported last week
Property prices in Israel have been rising steadily since January 2009 by 19% in the 12 months through January 2010. The CBS reports that the average apartment price at the end of December 2009 was NIS 929,500. The average price of a four-room apartment, the most common size among Israeli homebuyers, crossed the NIS 1 million threshold for the first time, to NIS 1.02 million.
Belying commitments by Minister of Housing and Construction Ariel Atias to reduce apartment prices in 2010, prices rose at beginning of the year.
Apartment prices rose 1.6% in January, the Central Bureau of Statistics (CBS)reported last week
Property prices in Israel have been rising steadily since January 2009 by 19% in the 12 months through January 2010. The CBS reports that the average apartment price at the end of December 2009 was NIS 929,500. The average price of a four-room apartment, the most common size among Israeli homebuyers, crossed the NIS 1 million threshold for the first time, to NIS 1.02 million.
PRIVATE BIDS FOR 74 RBS RBS "G" LAND PLOTS already submitted recently
The Israel Land Authority accepted bids for 74 "bnei beitcha"(build your own house) houses in RBS Gimmel Many of this bids came from a surprising number of secular families from the old Bet Shemesh.These families want their children to settle in Bet Shemesh and viewed this as the opportunity to make that become a reality., yet there are other secular and traditional families who want to "upgrade" and this is their only opportunity since nothing else is being planned in the whole city to cater for their needs.
Tuesday, March 9, 2010
RBS residents could soon add 40sqm to their homes
The city of Bet Shemesh is planning to allow all home owners whose properties are 10 years old or older in all of Ramat bet Shemsh A and part of B
to legally add an up to 40 square meters to their existing homes .
This will increase the cty's revenues twofold: by charging more rates (arnona) and by collecting fees for building licences.
They also aim at cutting the red tape, this will encourage people to aply for a building permit and not have to do it illegally with all the penalties involved.
In addition to the above measure, the municipality plans to employ more inspectors to "catch" those that add to their properties illegally.
to legally add an up to 40 square meters to their existing homes .
This will increase the cty's revenues twofold: by charging more rates (arnona) and by collecting fees for building licences.
They also aim at cutting the red tape, this will encourage people to aply for a building permit and not have to do it illegally with all the penalties involved.
In addition to the above measure, the municipality plans to employ more inspectors to "catch" those that add to their properties illegally.
Only 15% of rental contracts quoted in US$
Israelis have increasingly followed the call of Bank of Israel Governor Stanley Fischer to stop fixing the prices of apartment rentals in dollars over the past two years as a result of the weakening of the greenback. "In the last two years rental agreements have switched from quoting dollar prices to prices in shekel," said Bank of Israel economists in a report to be published in the forthcoming Recent Economic Developments issue.Until 2007 contracts quoting dollar prices constituted about 90 percent of rental contracts; today the figure is 15%.In reaction to the highinflation era of the 1980s, Israelis began to quote prices of various items on the domestic market in dollars. In the housing market this practice continued for years even after inflation had fallen, until the recent fall in the dollar's value.
Monday, February 15, 2010
Haredi bidders win most new Beit Shemesh lots
The Israel Land Administration published, last week, the results of the tenders for land zoned for the construction of 2,000 apartments in Beit Shemesh.
Most of the winners of the tenders are contractors who focus on residential building for the ultra orthodox population in Jerusalem, Maaleh Adumim, Modiin, and Beit Shemesh, as well as Charedi non-profit organizations.The winners paid more than NIS 120 million altogether for the tenders. They will also pay NIS 160 million in development costs.
Most of the winners of the tenders are contractors who focus on residential building for the ultra orthodox population in Jerusalem, Maaleh Adumim, Modiin, and Beit Shemesh, as well as Charedi non-profit organizations.The winners paid more than NIS 120 million altogether for the tenders. They will also pay NIS 160 million in development costs.
Friday, February 5, 2010
Consumer confidence rises
The rise in January follows two months of falling figures.
The Israel Consumer Confidence Index rose by three points in January 2010 after falling 1.1 points in December 2009 and 4.3 points in November.
Macroeconomic figures published during January point to economic expansion.The positive figures reinforce consumers' feeling that the economy is on the rebound.
The Israel Consumer Confidence Index rose by three points in January 2010 after falling 1.1 points in December 2009 and 4.3 points in November.
Macroeconomic figures published during January point to economic expansion.The positive figures reinforce consumers' feeling that the economy is on the rebound.
Thursday, February 4, 2010
Israeli Prime Minister to Cut bureaucracy, corruption in building sector
"There are young couples who are now stuck, and there are people packed in the narrow strip of Hadera, Gedera, and Jerusalem at astronomical apartment prices. These are the land prices because there is no land. As a result, more and more young couples are living with their parents. Israelis consider an apartment as a lofty dream for which they must mortgage their lives in order to achieve. We're taking steps to change that" said Prime Minister Benjamin Netanyahu.
In other words, prices are set by market forces(the theory of demand and supply) but at least these proposed reforms will ensure that many prospective buyers will consider enlarging their homes rather than selling and buying bigger ones, hopefully these measures will then stabilize prices somehow.
The reform, beginning with the new planning and building law, aims at improving the transparency and accessibility of all planning and building applications, as well as setting deadlines for the granting of permits and aims to shorten and simplify planning and building licensing procedures, while improving the quality of construction.
Netanyahu said that Israel was in first place on the number of computers per household, but 120th in time needed to obtain a building permit!.
"End the system of planning and building commissions' meeting behind closed doors. Everything will be displayed on the Internet. We want transparency. We'll set up a special Police unit to fight corruption in planning and building." He added.
In other words, prices are set by market forces(the theory of demand and supply) but at least these proposed reforms will ensure that many prospective buyers will consider enlarging their homes rather than selling and buying bigger ones, hopefully these measures will then stabilize prices somehow.
The reform, beginning with the new planning and building law, aims at improving the transparency and accessibility of all planning and building applications, as well as setting deadlines for the granting of permits and aims to shorten and simplify planning and building licensing procedures, while improving the quality of construction.
Netanyahu said that Israel was in first place on the number of computers per household, but 120th in time needed to obtain a building permit!.
"End the system of planning and building commissions' meeting behind closed doors. Everything will be displayed on the Internet. We want transparency. We'll set up a special Police unit to fight corruption in planning and building." He added.
Monday, January 25, 2010
Trends for the next decade in Israeli real estate
Is the country headed for a greener, taller, and more expansive future?
How green is your building?
Environmentally friendly construction and building management is moving from slogans to reality.
The trend to conserve water and energy and to protect natural resources in construction has been growing in most of the Western world, but is only just starting out in Israel.
This does not prevent many Israeli developers and contractors from crowing about so-called "green" projects in order to jump on the global environmentalism bandwagon.
How green is your building?
Environmentally friendly construction and building management is moving from slogans to reality.
The trend to conserve water and energy and to protect natural resources in construction has been growing in most of the Western world, but is only just starting out in Israel.
This does not prevent many Israeli developers and contractors from crowing about so-called "green" projects in order to jump on the global environmentalism bandwagon.
Inflation zero in December 2009
The surprise figure keeps inflation for 2009 at 3.9%, still above the government's price stability target range.
The Consumer Price Index for December, released on Friday 15 of January 2010 remained unchanged, in stark contrast to earlier predictions of analysts, who predicted a rise of at least 0.3%. The annual inflation rate for 2009 stands at 0.9% over the upper limit of the price stability target range set by the government(ie 3%).
The Consumer Price Index for December, released on Friday 15 of January 2010 remained unchanged, in stark contrast to earlier predictions of analysts, who predicted a rise of at least 0.3%. The annual inflation rate for 2009 stands at 0.9% over the upper limit of the price stability target range set by the government(ie 3%).
Monday, January 11, 2010
Update on current interest rates for a NIS 500,000 loan -20 year repayment
1) Prime(-) currently stands at 2.75 less .4= 2.35% per annum
2)Variable interest indexed annually 2.95% + annual inflation rate for
2009 estimated at 3% total 5.95% per year
3)Fixed interest 4% to 4.5% per year
2)Variable interest indexed annually 2.95% + annual inflation rate for
2009 estimated at 3% total 5.95% per year
3)Fixed interest 4% to 4.5% per year
Update on prices in Ramat Bet Shemesh A,etc
4 room apartments in RBS have already passed the NIS 900,000 mark and are now selling in the range of NIS930K-NIS960K
3 room apartments are selling for NIS 800k to NIS 830K whilst 5 rooms go for NIS1,300K to NIS 1,350k, an increase of 10 to 12% over 2008.
In the Sheinfeld neighbourhood prices tend to be similar to that of RBS A , except for the older buildings (about 20 years of age) there prices can be 5 to 10% less
In the old Bet Shemesh, prices rose over the las 2 years by about 35%, today a 3 room apt can be had for around half a million Shekalim (2 years ago the same
apartment was sold for NIS 370,000)
3 room apartments are selling for NIS 800k to NIS 830K whilst 5 rooms go for NIS1,300K to NIS 1,350k, an increase of 10 to 12% over 2008.
In the Sheinfeld neighbourhood prices tend to be similar to that of RBS A , except for the older buildings (about 20 years of age) there prices can be 5 to 10% less
In the old Bet Shemesh, prices rose over the las 2 years by about 35%, today a 3 room apt can be had for around half a million Shekalim (2 years ago the same
apartment was sold for NIS 370,000)
Housing prices continue to rise
The Central Bureau of Statistics in Israel's(CBS) data shows that since the beginning of the year home prices have jumped 15%.
Home prices rose 2.2% in October. This followed a rise of 1.5% in September, and 2.4% in August.
CBS data shows that since the beginning of the year home prices have jumped 15%. Since May of 2007, when a trend of prices rises began, home prices have risen 32.2%.
Home prices rose 2.2% in October. This followed a rise of 1.5% in September, and 2.4% in August.
CBS data shows that since the beginning of the year home prices have jumped 15%. Since May of 2007, when a trend of prices rises began, home prices have risen 32.2%.
Tel Aviv most expensive city in Mideast, No. 17 in world
The survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. Top 20 costliest cities
No. 1 . . . . . . Tokyo
No. 2 . . . . . . Osaka
No. 3 . . . . . . Moscow
No. 4 . . . . . . Geneva
No. 5 . . . . . . Hong Kong
No. 6 . . . . . . Zurich
No. 7 . . . . . . Copenhagen
No. 8 . . . . . . New York
No. 9 . . . . . . Beijing
No. 10 . . . . . .Singapore
No. 11 . . . . . . Milan
No. 12 . . . . . . Shanghai
No. 13 . . . . . . Paris
No. 14 . . . . . . Oslo
No. 15 . . . . . . Caracas
No. 16 . . . . . . London
No. 17 . . . . . . Tel Aviv
No. 18 . . . . . . Rome
No. 19 . . . . . . Helsinki
No. 20 . . . . . . .Dubai
No. 1 . . . . . . Tokyo
No. 2 . . . . . . Osaka
No. 3 . . . . . . Moscow
No. 4 . . . . . . Geneva
No. 5 . . . . . . Hong Kong
No. 6 . . . . . . Zurich
No. 7 . . . . . . Copenhagen
No. 8 . . . . . . New York
No. 9 . . . . . . Beijing
No. 10 . . . . . .Singapore
No. 11 . . . . . . Milan
No. 12 . . . . . . Shanghai
No. 13 . . . . . . Paris
No. 14 . . . . . . Oslo
No. 15 . . . . . . Caracas
No. 16 . . . . . . London
No. 17 . . . . . . Tel Aviv
No. 18 . . . . . . Rome
No. 19 . . . . . . Helsinki
No. 20 . . . . . . .Dubai
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