April 5, 2012–Home prices and rents will continue to rise, says Bank Leumi in its weekly macroeconomic survey. It adds that new home sales totaled 1,423 in February, 4.2% more than in January, but that the housing inventory fell to 14,415 homes – the first time since early 2011 that this figure declined.
“The gap between new apartments available for sale and the rate of new home sales began to widen again in the past three months. This is reflected in the month drop in supply, which is now sufficient for 10 months, at the current rate of sales,” says the bank.
Bank Leumi attributes the renewed demand for new apartments to the waning of last year’s social protest, which caused a temporary drop in prices; and renewed drop in the mortgage interest rate. The average mortgage interest rate has fallen by 30 basis points since October 2011, in line with the 75-basis point cut in the interest rate by the Bank of Israel to 2.5%…Read More>>