Dror Marmor

For Housing Minister Uri Ariel, the current housing shortage supersedes attempts to reach peace with the Palestinians and the Americans.

Nationwide foreign residents account for a negligible number of purchases but in some Jerusalem neighborhoods they account for 40% of purchases.

Uri Ariel has realized all to quickly that the power of the housing minister in Israel is mostly in pompous and populist statements to the media.

Instead of initiating another lost decade and falling home prices (prices fell 22% in real terms in 1998-2007), it would be better to slash prices all at once.

It is the banks which are the biggest player on the field in the capital intensive real estate industry.

Since 2005, when Fischer took up his post, housing prices in Israel have risen 70%.

Stanley Fischer is continuing to make efforts to cut spiraling real estate prices.

In a falling market, few will want to take advantage of the streamlined planning procedures.

Vested interests will thwart Netanyahu's treatment for the sick housing market, while the real ills remain without a cure.

The answer to the question whether prices are rising or falling depends on who's paying for it.

Without long-term plans to meet Israel's land and housing needs, the shortage will persist.