Wednesday, December 3, 2008

Jerusalem Real Estate Update

I just came back from seeing an apartment that's for sale. My wife and I have been looking to buy something for some time, but absurdly high prices have derailed our plans. Well for the better part of a year no matter what they say, the mid-market real estate market in Jerusalem has been dead. The same apartments have been sitting for months with no buyers. Today, finally I had both agents who showed me the apartment admit to me that the market stinks. Bad news for the agents and sellers but maybe just maybe the buyers will get some relief.

The problem, as both agents explained to me, is that the sellers still will not budge. They refuse to lower prices. At some though, they will capitulate and drop prices and then we may very well see prices in sought after neighborhoods drop but 10-15%.

If there is a silver lining in the economic slowdown, first time home buyers may be able to finally afford to buy an apartment in the nation's capital.

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