Property deals in the second half of 2007 were closing at levels similar to the first half of 2007, as israel real estate price increases began slowing. The flow of overseas buyers has slowed greatly in recent months.
The primary explanation for this slowdown is the economic crisis in the U.S. and the collapse of the dollar. Nevertheless, there is a feeling among prospective apartment buyers that Jerusalem property owners are asking too much for exclusive homes.
"There certainly is a slowdown," one agent says. "There is a feeling that while foreign residents behaved naively in the past and bought just about anything for any price, they are now wiser."
