The combination of the Jewish holidays and the recent stagnation in the real estate market made October a weak month for the sector. The banking system estimates the volume of mortgages taken in October at NIS 3.8-4 billion, down 10%, compared with the NIS 4.4 billion monthly average over the past year. The figure is nevertheless higher than in October 2016, when mortgage taking totaled only NIS 2.8 billion.
It should be noted, however, that there were fewer working days in October 2016 than in October 2017. This figure comes on top of the weak total for September recently released by the Bank of Israel. The Bank of Israel's figures show that mortgage taking in September totaled NIS 3.9 billion. The Jewish holidays began then, but even if the effect of the vacation days is eliminated, the figures are weak in comparison with the rate of mortgages we have become accustomed to seeing in the past three years.
Banking sources said that the decline in the number of real estate deals was being felt, mainly among investors and those seeking better housing, and that the main current activity today in the market is buyer fixed price plans.
Published by Globes [online], Israel Business News - www.globes-online.com - on November 1, 2017
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