The index fell 2.7% in March. Bank Hapoalim: The position of homebuyers has worsened.
The Mishkan Hapoalim Mortgage Bank Homebuyers Index fell 2.7% in March 2013 to 129.1 points (baseline 100 = January 1996).
Bank Hapoalim attributes the drop in the index to the deterioration in the position of homebuyers in March to the 1.7% rise in the Central Bureau of Statistics' Prices of Dwellings Index for the month. In the past 12 months, the index has risen by 10.5% in nominal prices and 8.2% in real terms.
Bank Hapoalim says that the deterioration in the position of homebuyers in March was due to the ongoing rise in home prices and a slight rise in the mortgage interest rate.
As for the level of activity, new home sales continued to stay high, while the housing supply has not fallen. "The fairly low interest rate and the expected indirect tax hikes are contributing to the steady demand," says the bank.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013