DS Brokerage: Home prices to fall in two months

DS chief economist Alex Zabezhinsky sees homes prices falling in Jerusalem and the south but still strong in Haifa.

DS Securities and Investments believes that the real estate bubble is about to burst.

In a report published today, DS chief economist Alex Zabezhinsky said, "Meantime the weakness is reflected mainly in terms of quantity and not in prices but this is a dynamic that typifies the end stages of a bubble."

The report adds, "In the next two months we expect to see this weakness in the price of apartments - the end of the first phase (of the bursting of the bubble) and then perhaps even subsequent falls."

DS said that when home prices fall, rental prices will continue rising.

Other signs of a cooling off in the housing market seen by DS include a rise of 6.5% since the start of the year in the new housing inventory. DS sees a fall in demand in the south of the country, Jerusalem and Tel Aviv while demand remains strong in Haifa and the center of the country. "The slowdown is not even throughout the country," the survey notes.

Zabezhisnky predicts that prices will soon begin to fall in Jerusalem, and the south.

Published by Globes, Israel business news - www.globes-online.com - on July 3, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018