In the past year, the residential real estate sector in Israel has experienced a significant slowdown, with a sharp decline in apartment sales and high interest rates making it difficult for buyers. Many real estate companies have faced challenges, with some experiencing declines of 30% to 40% in their stocks. The inventory of unsold apartments stands at about 83,000, and data shows a 5.7% decrease in sales compared to the previous year. This situation raises questions about the future of the market, especially in light of the large investments by banks in developers and contractors, which have led to an expansion of credit in the sector. There are concerns that the state may not allow a natural price collapse, which could lead to further inflation of the bubble. Additionally, the public is facing economic difficulties, with housing expenses taking up a significant portion of incomes, which impacts consumption and savings capacity. The current situation indicates a need for policy change to restore balance to the real estate market and prevent further damage to the economy.
The sharp slowdown, and stocks fell by 30%–40% in a year: real estate companies that lost value on the stock market
Source Themarker
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