Prices fell in the fourth quarter of 2007 despite higher demand from foreign buyers.
Housing prices fell nationwide in the fourth quarter of 2007, the Bank of Israel reports in the Survey of Economic Developments - July-December 2007. The Housing Prices Index fell by 2.3% in the fourth quarter after rising by 4.7% in the third quarter.
There is a wide variance in housing prices between high demand areas and prices in outlying areas. Prices rose sharply in the former, while falling in the latter. The Bank of Israel noted a number of factors boosting housing demand, including rising demand for apartments by foreign residents last year, but said that the industry did not respond to the increase.
The number of housing starts and completions remained at the low points reached in recent years. Housing starts rose by 2%, but housing completions fell by 9%. Inventory was 20% lower in November 2007 than a year earlier.
Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2008
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