"Realtors knock on doors and persuade apartment owners to sell"

Even if the wave of increases continued in the past, at least more apartments went on the market towards the spring.

This time it is different, and the expectation is for another jump in apartment prices.

why is it happening?

Professionals in the field explain

Walla!

Real Estate

14/03/2022

Monday, 14 March 2022, 10:05 Updated: 10:09

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As every year, in the spring there was a significant increase in the supply of apartments and houses for sale.

True, apartment prices are high anyway, the rising supply is supposed to benefit buyers, however this year the story is different.

Good to know (promoted)

It is unbelievable what happened to him in just 10 weeks

Submitted on behalf of TI SWIM

It will not stop.

Construction project in Yokneam (Photo: Reuven Castro)

Right: Hadas Roth and Shira Muskel, Hillel Architecture (Photo: Oded Smadar)

"The current period is characterized by a hibernation. Families are starting to think ahead, preparing for spring, summer and next year," explains architect Shira Muskel of Hillel Architecture. "This is a phenomenon that is felt every year. "You always feel the buzz before Pesach, and in general the spring-summer months are much stronger. But unlike previous years, today people have changed their attitude, realizing that this miracle does not happen in a month."

Referring to prices, Muskel explains: "The market is insane. In the sought-after cities the supply is very meager. The brokers are begging for houses, knocking on people's doors and persuading them to sell. In the end, there is not enough goods in the market. "They take advantage of it and even raise prices while negotiating. Anyone who manages to buy a property feels that it is an extraordinary achievement. Even before the sale, buyers come exhausted from the sale."

Buyers arrive exhausted.

Planning and design of Hillel Architecture (Photo: Oded Smadar)

Boaz Snir (Photo: Benjamin Adam)

Architect Boaz Snir says: "In February-March, we are witnessing an increase in interest both from returning residents who want to live in Israel, and from Israelis who are preparing the house for the summer for relocation or additions or changes. Come to us for consultation And change the interior design by maximizing the existing spaces.In any case, prices are constantly rising, an increase that began in the third wave of the corona.Currently it may have moderated slightly because there is no supply and there are hardly any assets in the market.The increase in raw material prices also contributes to price increases. "The firm is working on huge projects of massive interior renovations of homes, in light of the fact that property owners have been desperate to find a home to purchase that suits their needs.

Snir compares the current situation to last year and explains: "There is no doubt that last year there were more preparations for new property moves towards September, because of the strong waves of the corona and probably more properties for sale in the market. .

Property owners are desperate to find a home to buy - so they are renovating.

Boaz Snir Architecture (Photo: Valery Zoiz)

Ron Landsman (Photo: Nimrod Cohen)

Ron Landsman, CEO and owner of Remax SUPREME in Petah Tikva, adds: "We are witnessing a period of turbulent real estate market, in which supply is much smaller than demand. Every apartment offered for sale has 10 potential buyers, which raises property prices. In the current period About six months before entering the new frameworks, people are starting to plan the transitions so that supply increases, causing prices to moderate a bit, releasing the kind of traffic jam that has been so far. Prices continue to rise, but at a more moderate pace. "He also received it. In the current period of spring-summer, when the supply of assets has increased, it is already less expensive."

Referring to Petah Tikva, Landsman explains that while in January the supply of apartments amounted to about 250 apartments, in February the number jumped to 350 apartments and will continue to increase. "

Precisely where supply is increasing - but that will not lower prices.

The mother of the colonies in Petah Tikva (Photo: Reuven Castro)

"I do not see a price moderation this spring either, but on the contrary, these days I am witnessing a crazy rise in prices," says Rafi Habsov, owner of Rafi Properties, which specializes in marketing apartments in the central region in general and Holon-Bat Yam in particular. From a dire lack of apartments and indeed prices will continue to rise.

There are quite a few reasons for this.

The main of which is the sellers' understanding that every apartment in an old building they own, both as owners and as investors, has the potential for future construction vacancy.

Therefore, the apartment owners are in no hurry to sell and lose a future profit of about NIS 1 million on average.

Another thing I witness is that people internalize the high apartment prices and therefore continue to buy. "

Habsov says that in the last year in some properties the prices have risen by 25 to 30 percent.

There is a young generation for whom buying an apartment will remain a dream. "

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