However, Meitav's Ron Eichel expects government and Bank of Israel measures to slow the pace of rises to influence prices over the next 12 months.
In his weekly survey Meitav Investment House Ltd. chief economist and strategist Ron Eichel said, "The annual rate of rises in home prices continues to be high. Over the past 12 months apartment prices have risen 15.3%. At the same time, the influence of the interest rate rise, measures taken by the Bank of Israel over mortgages and steps taken by the Ministry of Finance regarding real estate taxes, and the continued rise in housing starts, should be reflected in price rises over the next 12 months."
Eichel believes that interest will again remain unchanged in August, He said, "The Bank of Israel tried to send a message in the last interest rate decision that it had not left the rate unchanged due to domestic reasons but the developing risks worldwide - mainly in Europe and the US."
Published by Globes, Israel business news - www.globes-online.com - on July 3, 2011
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