Happy New Year! 2010 was a great year, and I look forward to working with you all in 2011. Over the past week I’ve been […]Read more
So 2010 has come to a close, and what a year it’s been. After a huge 2009, homebuyers and market observers alike foresaw a “bubble burst” in store for for 2010, which to homebuyers’ dismay, and to sellers’ advantage, did not happen this year. In fact, the two year trend of rising prices only continued steadily, despite the significant drop in deals made and customer demand.
“Tel Aviv is the center of it all”. “We have two countries here, the State of Israel, and the State of Tel Aviv”. “Oh what a dream it would be to live in Tel Aviv”. We’ve heard them all. It seems on the surface, that everyone in Israel would sell their first born to move within the relatively small borders of this city of 404,000 souls within 51 square kilometers / 19.8 square miles.
Now let’s face it, mortgage rates in Israel aren’t exactly the most interesting thing in the world to most us outside of finance, but they’re sure as hell really important nonetheless. Here’s what you need to know—they’ve risen, yet again. Due to new regulations from the Bank of Israel (Israel’s Central Bank) in an effort to cool the hot housing market, the retail banks of the nation are in a frenzy coming up with a number of new regulations and rates, the majority of which are of no help to most us.
The Mishkan Housing Market Index, a monthly index that measures the financial conditions of the Israeli Housing Market, hit a 6 year low in December 2010, the lowest since October 2004. The index is made up of 4 factors; the Israeli average salary, the unemployment rate, national apartment prices, and the mortgage interest rate. According to Bank HaPoalim, “the prices of homes in Israel rose 14.7% in the preceding 12 months. Since the last low point in 2007, prices has risen 38% in real terms”. That being said, the index has fallen 21% from its high point of 171 points in July 2008.Read more