"Elections will unquestionably raising housing prices, which have been faltering somewhat in recent months," Anglo Saxon Reality CEO Adina Haham said today.
She added, "Even the possibility of elections is enough to produce a market buzz resulting from uncertainty. While there has been a feeling up until now that the Minister of Finance had successfully halted the upward trend in housing prices, an election campaign will set the market in motion with no stops, with a steep increase in prices becoming a likely prospect."
Commenting on the fate of the law for taxing a third housing unit, Haham said, "Petitions against the law are now being heard by the High Court of Justice. If the government does not survive, the law will probably not survive, either, as happened with the 0% VAT bill during MK Yair Lapid's term as Minister of Finance. Actually, there are many people who will be glad to see this law put aside, and this will affect mainly investors who planned to sell their housing units or stopped buying additional ones. Those who are sitting on the fence and waiting to see what happens will get off it and go back to the market. The same is true for young couples who have been waiting for the buyer fixed plan lotteries. People who planned to buy a home won't go on waiting.
"I predict that deal turnover will increase, after a period of decline in the number of deals. The gap between supply and demand will continue to widen. The question of government aid for contractors and the importing of foreign workers will also be in doubt in case of elections."
Published by Globes [online], Israel Business News - www.globes-online.com - on March 19, 2017
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