"Home price fall is temporary"

DS macroeconomist Alex Zabezhinsky: The stock of apartments that is expected to become available will not be able to fully satisfy potential demand.

DS Securities & Investments (TASE: DSIN) is not overly excited about Central Bureau of Statistics data that show a rise in real estate sales and demand for November. They note that these data do not show a change in the housing market trend, and claim that housing prices will fall in the upcoming year.

"There was slight improvement in the real estate market in November, following the fall the previous month, which was apparently due to the holidays," says DS macroeconomist Alex Zabezhinsky. Zabezhinsky also says that despite the rise in the number of apartments sold and mortgages taken, the increased supply should ultimately bring prices down.

"As we stressed a number of times in previous surveys, we predict a fall in housing prices in the upcoming year. The rate of decline will depend to some extent on the degree of slowdown in economic activity," Zabezhinsky says. However, DS states that the entire stock of apartments that is expected to become available will not be able to fully satisfy potential demand, and there will therefore be no permanent fall in real estate prices over time.

Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

View comments in rows
Update by email about comments talkback
Your name
Please insert your name
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Twitter Facebook Linkedin RSS Newsletters גלובס MAD Conference 2017