They claim that in spite of efforts to increase the supply of apartments, the bank believes that demand will still outstrip supply in the near future.
Furthermore, the bank expects the inventory of homes for sale to remain low and so will interest rates,this will reflect further price rises, although at a much more moderate rate than in the last few years.
Sunday, January 30, 2011
Wednesday, January 19, 2011
Economists estimate 0.3-0.4% December inflation
Such an inflation rate is comfortable enough for the of Bank of Israel to keep the interest rate for February unchanged.
According to forecasts inflation in 2010 will be 2.6-2.7%, toward the upper limit of the government's 1-3% inflation target. The Central Bureau of Statistics will announce the CPI on 16/1/11
The housing item in the CPI (rent) is again drawing the most attention. This item stopped rising in the preceding two months, but analysts are hesitant to declare a new trend in the market. The housing item accounts for 21% of the CPI as a whole.
It is premature to say what the the Bank of Israel will do about the interest rate but it looks like it will choose to keep rate for February unchanged at 2%.
According to forecasts inflation in 2010 will be 2.6-2.7%, toward the upper limit of the government's 1-3% inflation target. The Central Bureau of Statistics will announce the CPI on 16/1/11
The housing item in the CPI (rent) is again drawing the most attention. This item stopped rising in the preceding two months, but analysts are hesitant to declare a new trend in the market. The housing item accounts for 21% of the CPI as a whole.
It is premature to say what the the Bank of Israel will do about the interest rate but it looks like it will choose to keep rate for February unchanged at 2%.
Monday, January 3, 2011
Housing minister markets land for 3,800 homes
Half of the apartments will be in Lod and Ramle.
Minister of Housing and Construction Ariel Atias announced the marketing of land for 3,800 housing units by the Israel Land Administration (ILA). Since October 2009, the ILA has marketed land for more than 24,000 apartments nationwide.Most of the land in today's announcement is not in high demand areas,land for 1,300 apartments in Lod and for 720 apartments in Ramle.The ILA is also marketing land for 140 apartments in Petah Tikva, 190 apartments in Rishon LeZion, as well as lots in Ness Ziona, Kafr Kassem, Modi'in, Kadima Zoran, Gedera, and Rosh Ha'Ayin.In the south, the ILA is marketing lots in Dimona, Ofakim, and Ashkelon, and in the north, in Haifa and in the Nazareth area.
Minister of Housing and Construction Ariel Atias announced the marketing of land for 3,800 housing units by the Israel Land Administration (ILA). Since October 2009, the ILA has marketed land for more than 24,000 apartments nationwide.Most of the land in today's announcement is not in high demand areas,land for 1,300 apartments in Lod and for 720 apartments in Ramle.The ILA is also marketing land for 140 apartments in Petah Tikva, 190 apartments in Rishon LeZion, as well as lots in Ness Ziona, Kafr Kassem, Modi'in, Kadima Zoran, Gedera, and Rosh Ha'Ayin.In the south, the ILA is marketing lots in Dimona, Ofakim, and Ashkelon, and in the north, in Haifa and in the Nazareth area.
Israel's economic growth in 2010 bests forecasts
Local economy expands by 4.5%, surpassing OECD average of 2.7%.
Israel's economy did better than expected, expanding by 4.5% this year, according to preliminary estimates. The average among the OECD nations is reportedly 2.7%.
While living standards apparently contracted in most of the West, here an index tracking the standard of living increased by 2.7% in 2010, officials from the Central Bureau of Statistics stated .
Israel's economy did better than expected, expanding by 4.5% this year, according to preliminary estimates. The average among the OECD nations is reportedly 2.7%.
While living standards apparently contracted in most of the West, here an index tracking the standard of living increased by 2.7% in 2010, officials from the Central Bureau of Statistics stated .
Monday, October 11, 2010
The inventory of new houses in Israel fell to 9,370 in August 2010, the lowest for many years.
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.
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.
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.
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