Declines, stagnation or a new wave: where is the housing market headed

In episode 403 of the Calcalist Money Engines podcast, Ori Greenfeld hosts Matan Shitrit for an analysis of the housing market. The official index shows a decline of about 2% over the past year, but the second-hand index points to drops of 2%-3% per quarter in the center. The inventory of unsold apartments stands at about 86,000, while rents are actually rising.

In episode 403 of the Calcalist Money Engines podcast, economist and chief strategist at Agam Leaders Ori Greenfeld hosts Matan Shitrit, chief economist at Phoenix, for an analysis of the Israeli housing market. The official CBS index shows a decline of about 2% in apartment prices over the past year, but the new second-hand apartment index indicates drops of 2% to 3% per quarter in the central districts, Tel Aviv, and Jerusalem. The inventory of unsold apartments held by contractors stands at about 86,000, compared to about 40,000 three to four years ago. Contractors are offering financing deals like 20/80 and 10/90 instead of lowering prices. In the rental market, there is an increase, and the current rental yield stands at 2.5%-2.7% compared to a financing cost of about 4.5%. The episode also discusses the sharp declines on the Tel Aviv Stock Exchange over the past week and a half.