Israel has tumbled to 23rd place in the Global Property Guide rankings for the rise in home prices in the third quarter from 6th place in the second quarter. Home prices were 2.66% higher in nominal terms in the third quarter compared with the corresponding quarter, and fell by 3.65% compared with the preceding quarter. The year-on-year rise in home prices declined from 16.82% in the third quarter of 2010 compared with the third quarter of 2009.
The fastest rising home prices were in Delhi, Sao Paulo, Hong Kong, Latvia's capital of Riga, and Estonia's capital of Tallinn. Ireland is at the bottom of the third quarter ranking, with a 13.5% drop in home prices compared with the corresponding quarter.
Global Property Guide states, "House prices in Israel fell 0.58% in the year to the third quarter of 2011, the first drop since 2009. During the latest quarter, house prices were down 3.65%. The moderation in home prices comes against the background of the continued increase in the number of building starts, the lagged effect of the increase in the interest rate, measures introduced by the Bank of Israel affecting mortgages, and steps taken by the Ministry of Finance in real estate taxation. The effect of these moves is expected to continue and be evident going forward."
Published by Globes [online], Israel business news - www.globes-online.com - on December 4, 2011
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