By Shia Getter
Trends in the real estate market mean something. They tell you when it’s time to buy, when it’s time to sell, or when it’s time to just sit tight and see what happens.
If you’re thinking about buying real estate in Israel, the data seems to indicate that the time is now.
Here’s what we know:
Between June of 2015- February 2018, Israel’s Central Bureau of Statistics reported a market slowdown. What’s interesting to note is that although number of sales dropped, prices actually didn’t.
In March of 2018 sales started to pick up again and have continually increased by 1.9% monthly. In October sales hit a 15-month high.
The CBS also reports that demand for apartments has increased by over 10% in the third quarter of 2018, which means that prices are poised to increase.
The CBS diagram illustrates that new building numbers are the same as they were in the 1970’s, particularly in Jerusalem. This indicates that new construction will not be high enough to meet the increasing demand.
Recent events, like the opening of Jerusalem’s new high-speed train, the moving of US embassy to Jerusalem, and similar announcements by Brazil and Australia, are expected to generate an increase in demand for Jerusalem real estate.
The Israeli government is not blind to the data. They are doing their part to redirect demand to areas outside the center of Israel. Looking back at 2017, more than 50% of the apartments that were approved by the government were located in the less densely populated north and south of Israel. These numbers indicate that the Israeli government is hoping to encourage buyers to purchase property outside of Jerusalem.
That effort is not working. Buyers continue to choose Jerusalem and center-of- Israel real estate, despite decreasing availability. Many cannot resist the allure of the city’s culture, proximity to employment opportunities, and the convenience of accessible transportation.
As a potential buyer, what does all this mean to you?
Reading handwriting on the wall, it is clear that right now it is still a buyer’s market—but that the clock is ticking. As demand continues to build and supply reaches its max, apartments in and near Jerusalem will become scarce. Prices will increase, and buyers will find it more difficult to find favorable deals.
Obviously, we don’t have the benefit of prophecy in our times, and no one can truly predict the future. We can, however, examine the numbers and analyze the market to make educated decisions based on the facts at hand*.
If you are thinking about buying real estate in or near Jerusalem, the data seems to indicate that it would be wise to make the move now, before the market balance tips in favor of sellers.
At the Getter Group, we help buyers navigate the Israeli real estate system and protect you from pitfalls. We advocate for your interests, saving you time, money, and headaches. If you’re thinking about buying in Israel, discover valuable resources to make that process smoother. The Getter Group will be coming to the States this winter, book a free consult with Mr. Shia Getter, limited slots available!
You can learn more about us on our website www.thegettergroup.com.
*All information from recent releases from the Central Bureau of Statistics
This article is intended to provide general information about the sub¬ject matter covered. It is not meant to provide legal opinions, offer advice, or serve as a substitute for advice by li¬censed, legal professionals.
The author does not guarantee that the information contained herein is complete or accurate, and does not as¬sume any liability for any loss or dam¬age caused by errors, inaccuracies or omissions contained in this article.