Here are some highlights of recent happenings in Jerusalem and/ or Israel related to Real Estate.
 
 
Number of days to close home sales falls in June
 
According to Israel Real Estate Consulting Firm, Eldar Projects Marketing, Ltd, the time it took to close a home purchase in the month of June was down to 31 days, from the 36 day timeframe in April-May of this year.  The Company attributes this to an "increased sense of urgency" on the part of buyers who are concerned with Israel's low housing inventory.
 
The Central Bureau of Statistics said in a recent report, that the housing supply totaled 8,990 apartments at the end of May 2010, 13% less than a year earlier.
 
Source: Globes online, Central Bureau of Statistics
 
Mortgage rule changes slowing Real Estate market in Israel
 
In late May of this year, the Bank of Israel announced changes to Mortgage lending rules that would require Banks to set aside a reserve of 0.75% of the outstanding value of a mortgage, anytime the Bank lends more than 60% of the value of the property the borrower is acquiring.  Up until that point, Banks were able to loan 70% of the value of a property and sometimes more.
 
The new lending rules seem to have had a dampening effect on new apartment sales in Israel.  The sale of new apartments in Israel was down substantially in June compared to the previous month's activity.  
 
Source: Central Bureau of Statistics
 
Low home supply in Israel’s center puts pressure on prices
 
In its most recent weekly macroeconomic report, Bank Leumi noted that the housing inventory in June was sufficient for 7.9 months, in trend figures and for 5-7 months with an inventory breakdown by region in the Central, Haifa, and northern districts, down from an 8-14 months supply two years ago.
 
The Israel Central Bureau of Statistics released figures at the end of July, showing that the number of apartments for sale in Israel at the end of June was down from a year ago in all areas of the country except Jerusalem, where inventory was up 18%.  In Tel Aviv, the number of properties on the market in June of this year was down nearly 12%.
 
Source: Globes online, Central Bureau of Statistics
 
Israel real estate prices have been rising too rapidly in 2010
 
The Bank of Israel's second quarter inflation report, released in early August, seems to warn quite clearly of a bubble forming in real estate prices.  The report says, "Apartment prices (which are not included in the CPI) have continued to rise since the beginning of the year by more than the rate derived from the housing market fundamentals." 
Source: Globes online
 
New apartment sales in Israel down slightly in July
 
 
According to statistics released in late August by Israel's Central Bureau of Statistics, the sale of "new" apartments in Israel was down approximately 5% in July from June's sales figures.   According to the CBS Report, 1,139 new apartments were sold in the country during the month of July, compared to 1200 in June.  The July sales for this year were 20% less than July 2009. 
 
Source: Central Bureau of Statistics