The slowdown in Israel's housing market is mainly due to rising unemployment, says "Global Property Guide" in its survey for the second quarter of 2012. It also cites "steps taken by the government and the Bank of Israel, and to domestic social unrest over the rising cost of living. In addition, worsening global economic uncertainty has not helped."
Israel is ranked 22nd out of the 38 countries reviewed in the current survey. "In Israel, the average price of owner-occupied housing dropped 1.52% year-on-year in the second quarter. However, owner-occupied housing prices increased 1.44% during the quarter." In nominal terms, home prices were 0.03% higher in the second quarter compared with the corresponding quarter and 2.48% higher compared with the preceding quarter. Home prices in the second quarter of 2011 were 6.81% higher in inflation-adjusted prices 11.2% higher in nominal prices than in the second quarter of 2010.
Sao Paulo in Brazil tops the second quarter rankings, with a 15.56% jump in home prices (in inflation-adjusted prices) compared with the corresponding quarter of 2011, followed by New Delhi, India, and Turkey. Portugal, Greece, Spain, and Ireland were at the bottom of the ranking, with the average home price down over 10% each in inflation-adjusted prices, compared with the corresponding quarter.
"Prices in the world's housing markets are still falling. Of the 38 countries for which quarterly house price figures are available, house prices fell in 24 countries, rose in only 13, and one country (the US) posted mixed signals during the year ending in the second quarter of 2012," says "Global Property Guide".
Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2012
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