Out with the Old,
In with the New
(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)
As the end of the Jewish year approaches, this is a time to reflect and think about the past year. As I analyze my year as a proud father, it has been an incredible year full of happiness and growth as my son is nearly one and a half years old, and I, as a father, have seen him grow from a newborn to a happy crawling baby.
Less importantly, although quite relevant, is my growth within my career as a Jerusalem Real Estate Broker.
This year has been an interesting one with continuous rising in prices and continued confusion from foreign buyers trying to grasp market conditions.
Towards the end of this year, we have seen further dilemma at the question of why world affairs, the economy, and rising inflation has seemingly not impacted the Jerusalem real estate market.
Will we see these effects in this coming year? No one knows for sure.
What I can say, however, is that we are starting to see buyers being a bit more cautious with the deals they are doing and sellers that are desperate to sell are coming to the table a bit more than they were in the past year.
Opportunities for buyers look likely to rise
Prices, in my opinion, are not dropping in large numbers however, someone asking 10 million shekel for their property which would usually at minimum take 9.9 million shekel, may be more open to negotiations of around 9.5 million shekel.
Again, there are always extreme examples of people desperate to sell, but that is not mainstream.
Despite this, sellers have recently been looking at the market and the economy realistically and if tight on cash, may decide to make some personal financial decisions and sell their real estate.
The average pricing of the market may indeed take a little bit of a knock in the upcoming year, and opportunities for buyers will definitely arise.
Position yourself to jump on a deal
Many buyers have been sitting for the past couple of years waiting for a 20% drop in market prices. While this is their right, I personally have not seen the market trending that way. What I do see is that buyers should be positioning themselves to be able to jump in on any opportunity that arises.
If you have not started the process, you will not be able to grab good opportunities. I am sure many of you readers are saying to yourselves that you are looking to buy in Israel but… Start getting involved in the process. Start understanding the market.
If you look back historically, when the market drops in terms of quantity of deals, it generally does not take massive hits in pricing. I personally would advise my clients not to wait for this huge drop in prices, but rather to position themselves in a way that they can jump in on a deal at any time. I really believe that in the upcoming year there will be great opportunities. Having a connection with a broker that will be able to send you these opportunities is crucial.
If you do not know what you want to buy, do not have a lawyer, have cash ready, or a mortgage broker to get a quick approval - these things are essential to be in the proper position to purchase real estate in Israel quickly.
As the new year starts, it is time to think realistically about how you plan on jumping into the market and obtaining the best deal for yourself.
An interesting year ahead...
I personally do not think we will see an end to that, and the continuous demand despite current world events is going to persist. The economy may have an effect on what buyers are looking for, but it has not deterred people from buying.
As the economy gets tougher, in a certain way, more people want to purchase real estate in Israel - whether it is to move permanently, a holiday home, or a means of investment.
As we look back on the old year and we look forward to the new year ahead, I think the Jerusalem real estate market has quite an interesting year ahead of it.
Shana Tova, wishing everyone a happy and healthy new year.