The social protest about a decade ago - prices were 100 percent cheaper than today, and even then everything was expensive (Photo: Reuven Castro)
Ladies and gentlemen - BOOM: The CBS announced that the housing market has returned to 2021 prices, what excitement. Wow.
Or not? Actually, a year ago it was cheap here? Weren't we complaining that the prices were sky high and no one could buy an apartment? We were complaining. If we recall for a moment, a year ago The prices of the apartments were also 20% cheaper, and the loan was also cheaper because of the zero interest rate.
Realize, we are now in a market correction.
In the headlines they exclaim that this is the big turn in the housing market, "the contractors are starting to internalize" - because they offer you a variety of gifts in the form of a good layout More of the payment, discounts of hundreds of thousands of shekels on the price, etc.
So just before you run to buy an "apartment as a gift" let me surprise you - usually, in a normal period, a discount of 5% of the price should be automatically deducted from the contractors' price lists.
Prices didn't go down - it's the return that calmed down
And yet, where will you see a drastic and real downward change?
in the private apartments.
at the brokers.
People thought that every apartment was worth millions, certainly their apartment, and raised the prices more and more, as if they were sitting on a gold mine.
Asking, as we know, doesn't cost money, and posting on the boards doesn't really cost either.
In times of madness and hallucinations, there were many who got what they wanted, so it has no meaning.
Today you can see big falls there.
Not because prices have gone down because returns have calmed down.
I always remind my friends that about a decade ago, during the social protest, we went out to the boulevard in tents because of the apartment prices.
Since then, prices have risen by more than 100 percent - and yet, even then, no one snapped up apartments like crazy because they were "cheap".
So let's get into proportion.
The market needs a correction, and this is its time.
Contractors who didn't save their fat reserves for bad times of hunger might eat it - but that's only their fault.
They are just on the fence - waiting to erupt
And how do I know that apartment prices haven't reached the end of the road?
Because no one has yet solved the crisis.
The stock of apartments is running out, the government still hasn't really come up with coherent plans and the sales sites are full of people.
Maybe not buying, just interested.
But the demand is there.
They are just on the fence, waiting in a bottleneck that will burst again someday.
As Warren Buffett told me in one of our five meetings: "When the herd rushes in, everyone buys. When prices are low, they wait."
So be like everyone else, wait for the price to rise and then buy -
I can only guarantee that the opportunities won't be there
.
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