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"Lowering the purchase tax was a stick in the wheels on the part of the state"
The Bank of Israel's financial stability report, which showed that real estate prices will continue to rise, did not surprise investors: "The roller coaster continues to move and widen the gap between the classes - those who have the means buy an apartment and get in the caravan and those who do not get off track"
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Bank of Israel
Walla!
Business
Tuesday, 02 February 2021, 00:57
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The situation is not really clear in the market (Photo: Reuven Castro)
Adir Yonsey and Omri Galili
Bella Barda Barkat
On Monday, the Bank of Israel published its report on financial stability, which raised, as expected, problematic findings such as a sharp decline in many businesses' turnover and a significant damage to revenues.
When it comes to real estate, the bank wrote that perhaps the trend of slowdown in the increase in the price of housing services will take some time and will mainly be reflected in the index of housing prices. Bank estimated that the increase in excess demand increases, the decline in residential construction investment during the crisis.
Mighty Lyons and Omri rolls, CEO " For a joint venture at yg, a company that specializes in real estate investments throughout the country, they note: "Almost a year ago, with the outbreak of the corona, there was an initial thought that the industry would freeze and so would apartment prices.
But supply continues to hurt and demand continues to be a constant pressure cooker.
In the long run, the rising price trend will continue and so will the half-demand.
There seems to be no savior on the horizon for construction starts and a decline in the stock of new apartments - and the upcoming election campaign will not provide a solution to the situation.
And the sharp decline in volume. "
Younsey and Galili add: "The roller coaster continues to move and widen the class gap - those who have the means buy an apartment and get in the car and those who do not get off the track. There is no doubt that reducing regulation in the mortgage industry and lowering the purchase tax were a stick in the wheels."
Bella Barda Barkat, attorney and real estate and urbanism expert: "During terrorist incidents from time to time - apartment prices rose. During the economic crisis in 2008 - prices soared and so it will continue to be in the days after Corona whose effects will be seen in the coming years. In the land reserves available for construction and many delays in issuing building permits, and the increase in population continues - price increases get a vigorous boost. For those who are undecided whether it is the right time to buy an apartment it remains only to say there is no reason to wait for miracles. When they start again, when these young couples return to work, the opposite effect will be created, in which the dream of buying an apartment will seem closer to them than ever, but on the other hand demand will only increase - and prices will skyrocket. Deferring mortgage payments has helped in the short term. "A household that deferred payments has entered the banks' credit report database and may have difficulty obtaining loans in the future. The conclusion is that there is really no one to rely on but himself, especially during this period."
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