Home prices in Israel have almost doubled since the current wave of price rises began in May 2007. The inflation figures that the Central Bureau of Statistics released yesterday show that the Prices of Dwellings Index rose by 0.7% in April to 346.5 points. The index has thus risen by 95.4% since May 2007.
The Bank of Israel refers to the Prices of Dwellings Index in setting monetary policy, which, in recent years, has included macro-stabilization measures to damp the mortgage market. These restrictions have had only a small effect on the market, while the central bank's low interest-rate policy continues to stimulate it, leading homebuyers to take mortgages on a larger scale than before the 2008 financial crisis.
The 0.7% average home price rise in April follows a similar rise in March and a rise of 1.1% in February. So far this year, home prices have risen by 3.4%. In the twelve months to April, the rise was 8.2%, compared with 7.6% in the twelve months to March.
In the 83 months since May 2007, home prices have fallen in only 11 months, and then by amounts less than 1%, apart from October 2007, when a fall of 1.2% was recorded. The highest single monthly rise was 2.4% in July 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2014
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