The following analysis is based on the local market trends.
As of late, there has been very low supply and very high demand for properties specifically in the $1.5-$3.5 million range.
In the last month alone, most of our three- to five-bedroom luxury apartments have sold. The reason is because buyers are beginning to realize that there won’t be many new or different properties added to the market any time soon, so they need to adjust their requirements in order to finally buy a home and move forward with their lives.
Buyers who can compromise their needs or have flexibility in size, location or price are more likely to successfully close a deal on the current market. Recent sales have included buyers who have compromised by either stretching their budget, being willing to do some renovations or letting go of things like private parking or a storage room. It is important for buyers to make a list of their non-negotiables as well as some of the things that they would be willing to part with in exchange for the right home.
High demand and low supply means that properties are selling quickly, and getting new listings in a timely fashion is proving to be complicated. The reason that there is very low supply these days is because homeowners who sell will naturally need to replace their home with another. With the current market, it is very hard for people to find a better home or make a profit from their current home, so homeowners are holding off on selling.
The banks in America often lend 80%-100% mortgages, so people can borrow a decent amount of money in order to pay off their homes; however, in Israel, the banks generally lend foreigners up to 50%, and the same applies to Israelis who own more than one home. Because of this, it is rare that sellers are so over-leveraged and rushed to sell that they cannot hold on for a high sales price.
All in all, the current market is challenging, though not impossible. You will need a very good real estate agent in your corner to help you navigate the do’s and don’ts of purchasing your dream home in Jerusalem. Contact Ben today to discuss how CapitIL can help you start your journey.
To contact Ben email [email protected] or visit our website www.capitil.com
Ben Levene is CapitIL’s Real Estate’s director of sales and has been a licensed real estate agent in Israel for approximately 10 years. He has been involved in numerous transactions with people from New York, New Jersey and further afield. He also visits America, running panels for potential buyers and olim to Israel four or five times a year.
