The "Globes"-Homeless index found a growing number of investors are seeking to sell apartments due to worries that prices will fall.
The "Globes"-Homeless classified ads website index shows a 20% increase in the number of second-hand apartments for sale in July 2011, compared with June. Second-hand apartments account for 75% of all housing transactions.
A growing number of investors are seeking to sell apartments due to worries that prices will fall in response to tighter mortgage terms set by the Bank of Israel and the government's massive marketing of land for residential construction. Investors are also worried that rents will fall as the government promises to build thousands of rental apartments and student dorms. In addition, the reduction in the betterment tax on sales of apartments for investment will expire in 2013.
The result of the increase in the supply of second-hand apartments gives buyers - whose numbers are falling - more options and increases their bargaining power.
The Rehovot-Ness Ziona and Ashdod-Ashkelon areas were the only ones where number of second-hand apartments for sale fell in July. Prices for second-hand apartments rose in July in only one area - the Tel Aviv suburb of Kiryat Ono and its environs, due to fixed demand by young couples, and low supply of apartments for sale.
Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2011
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