Israelis are buying real estate: a new record for mortgage lending
The Israeli mortgage market is breaking new records. In June, Israelis took out mortgage loans totaling 11.6 billion shekels.
This is 22% more than the previous record set in May, when mortgages in Israel were taken for 9.5 billion shekels. The activity with which Israelis took out mortgage loans in the first half of this year indicates that the market is entering a new level, according to the economic publication Globs.
Mortgage data for May and June predicts the approximate volume of transactions and price increases (and there is usually a positive relationship between these three factors), which means that the Israeli real estate market does not stop for a second, and certainly not to find out what the new government is planning.
The information released by the Bank of Israel on mortgages in June is only partial, but even this data is enough to understand that 2021 promises to be remembered for its absolute records in the real estate market.
The sharp increase in the number of mortgage loans occurred just in the month when the Minister of Construction Zeev Elkin announced that apartment prices will continue to rise. However, it is hardly worth linking the current mortgage record with his predictions made on June 16, because the monthly growth in mortgage volumes has been going on almost continuously since May last year. The actual degree of influence of such statements on the situation in the Israeli real estate market will be determined, presumably, not earlier than in a few months.