In recent days, I have received quite a few calls from customers, including landowners and VPs.
In recent days I have received quite a few calls from clients, including landowners and VPs of business development
In real estate companies, and colleagues in the field from realtors to attorneys and appraisers, who ask my opinion on the market,
In real estate companies, and colleagues in the field from realtors to attorneys and appraisers, who ask my opinion on the market,
But mostly they want to tell their opinion.
It's true that in times of crisis, people tend to believe that the evil is still ahead of us and that everything is likely to collapse,
But if we try to look at the "dry" data, we may understand that the situation is not so terrible.
So before I write down my opinion, I'll list a few facts to help you understand why I think so:
But if we try to look at the "dry" data, we may understand that the situation is not so terrible.
So before I write down my opinion, I'll list a few facts to help you understand why I think so:
- The country's population growth rate requires about 70 new apartments a year.
- Banks have almost stopped new loans in recent weeks, both for entrepreneurs and private clients.
- There is a stagnation in the housing price plan and many cancellations of apartment owners who have already purchased.
- Almost all of those deals that have been in negotiations since February have been frozen
(Whether by entrepreneurs or by private customers in the Yad2 market) for fear of what will happen here the day after. - From conversations with colleagues who specialize in working with foreign residents, in almost every conversation they have with their clients from abroad, the issue arises on their part about the effective management of the "Corona" in Israel, lots of Jews from abroad (USA and some European countries) tried and try to come to Israel Without success, in my opinion, after the crisis has passed, there has been a significant increase in Jews from abroad, some of those who were debating whether to do so,
Will decide to advance this as the crisis progresses. - The aerial and marine curfew causes raw material shortages, which will cause prices to rise in the construction input index.
- Massive outflow of money from the capital market - it is likely that a significant portion of these amounts will return to the real estate market.
- Rise in interest rates on the part of banks for developers - the rise is supposed to cool the real estate market, but not in this case, since those 70, need residential apartments (not investors), a rise in interest rates will increase the price of apartments because ultimately the final consumer subsidizes it .
- Another point to consider - after the "rescue plan" of the economy, the state will have to repay the deficit from the taxpayers' money, it is likely that some of the deficit money will be refunded through taxes from the real estate market.
Given the points I mentioned and assuming that after the Passover holiday, the market will alternately return to normal
It seems that these will continue to support rising real estate prices. Assuming the crisis continues or worsens,
Which will lead to an ongoing economic crisis - this is a completely different story that will probably not miss the prices of residential real estate.
It seems that these will continue to support rising real estate prices. Assuming the crisis continues or worsens,
Which will lead to an ongoing economic crisis - this is a completely different story that will probably not miss the prices of residential real estate.
Another point, unlike in recent years, I estimate that this time the housing market will not change in the same correlation with the trade and employment market, where there will require higher protection and caution systems, but with the logistics market - I would be happy to expand in the next article.
And meanwhile, just health!
The author - Erez Duak
From "Duak - Brokerage and Marketing for Entrepreneurs"
From "Duak - Brokerage and Marketing for Entrepreneurs"
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