The israel real estate market entered 2008 with a certain amount of trepidation.
Potential home buyers are apprehensive, fearing that real estate prices will continue to rise as they did in 2006 to 2007. And those who invested in real estate, in what for them were halcyon years, fear that prices may fall in the future.
But before explaining what can be expected from the local real estate market in 2008 a few words on the past. From 1996 to 2004 or 2005 Israel experienced the longest, and in some ways sharpest, real estate depression in its history. Prices fell by 20 percent to 25% on average, while some categories, particularly expensive real estate, fell by up to 40%. This was something new in Israel.
