Jerusalem's Real Estate Market Analysis Amidst Uncertainty
Currently, we find ourselves in changing times. Since October 7, 2023 we have fielded numerous new enquiries about Jerusalem real estate.
Let's begin with an analysis of prices, focusing specifically on the primary areas of Jerusalem. Unlike the outskirts or locations outside Jerusalem, my expertise lies within these central regions.
Interestingly, prices appear to be holding steady, without significant fluctuations. This stability contrasts with historical events like intifadas and wars, where market transactions slowed down but prices remained resilient.
This time, however, seems different, especially when compared to situations outside Israel.
For the first time, there's a palpable sense of urgency and uncertainty, particularly on the United States East Coast. The demand for prime areas in Jerusalem is remarkably high.
In the initial two weeks of this period, there was a lull, but soon after, a surge in inquiries, phone calls, and even visits to inspect properties occurred.
Despite the stability in prices, a noteworthy observation is that the heightened demand might lead to an eventual increase in property prices. This presents a unique window where stability may offer an opportunity for potential buyers.
Moving on to the second point, the market has displayed stability for about 12 months — a rare occurrence in the last decade. This stability can be attributed, in part, to the strength of the dollar, which was around 3.65 and rose to 4.05 with the onset of war uncertainties.
The dollar's favorable exchange rate, combined with stable property prices, positions the market advantageously for American buyers. This means that, with the current exchange rates, you get more property for your dollar.
Considering the war itself and the situations it creates, contemplating real estate transactions during such times may seem unconventional.
However, looking ahead, when better days hopefully arrive, there's an anticipation that people will want to be in Israel. Buying now or in the near future can be seen as a show of support and commitment to the country.
Israeli Market Trends
The final point emphasizes the resilience of the Israeli real estate market.
Different from the 2008-2009 situation in the United States, where over-leveraging led to significant challenges, Israelis tend to be less over-committed.
The market in the last approximately 15 years tends to flatten rather than experience drastic drops. Opportunities do arise occasionally, especially when individuals need to sell, creating interesting prospects for buyers.
In conclusion, while the market remains stable, it's important to monitor the evolving situation and act thoughtfully. Whether considering a physical visit for property exploration or exploring remote purchasing options, understanding the market dynamics is crucial.
Opportunities may arise, and if the right one does, it could be an extremely sensible time to purchase in the current market.
(This article is not data-based but rather based on Ben Levene's personal market experience and opinions. No decisions should be made without thorough due diligence and professional financial advice.)