"Demand for apartments is expected to remain relatively high in the next few months and add to pressure for continued price hikes," Bank Leumi (TASE: LUMI) analysts estimated today during the bank's weekly macroeconomic review.
Leumi said that since the beginning of the year, supply of new homes has risen, with a certain decline in demand. According to Central Bureau of Statistics figures, since the beginning of the year, demand for new homes has declined by 3,000 apartments, compared with the corresponding period last year. On the other hand, the supply of new homes that remained for sale at the end of October rose 5,100 compared with October 2015; thereby, since the beginning of the year, apartment supply has risen more than demand. At the same time, Leumi said that the despite this moderation, new apartment sales volume remained higher than the long-term average, still reflecting a high demand level for homes.
Leumi analysts estimate that the demand for homes is expected to remain relatively high in the next few months, maintaining pressure for continued price hikes. "In order to change the longer-term trend in housing prices, it is also required to increase home supply in areas with the highest demand (Tel Aviv and central Israel) and in parallel act to make other areas more attractive and thereby divert demand from areas with the most demand to other areas," the review said.
Published by Globes [online], Israel business news - www.globes-online.com - on December 14, 2016
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