"Conduct of Government and the Bank of Israel failed to calm the housing market. It's a fact." That sets me Langermann, CEO of Discount Mortgage Bank, a conversation with ABC News. "Harsh background of Langermann says: mortgage market data released yesterday by the Bank of Israel, reveal that the number of mortgages in August is the second highest ever.
In August, public borrower mortgage amounting to 4.7 billion, an increase of 7.6% the previous month and 23% compared with August 2009. Record, incidentally, was recorded last June: So was the mortgage on a 4.87 scale billion. In the past 12 months put the amount of mortgage banks 45.1 billion, according to the Bank of Israel.
Despite the high amount in August continued decline in mortgage transactions last year. The number of transactions in August this year amounted to -8172, a decrease of 20.28% over the corresponding month last year. July fell by 13% in mortgage transactions compared to July 2009. "You have to remember that because of the rise in housing prices, people take large mortgages today than what took two years ago," said Eli Gold, director of retail credit and mortgages at Bank Hapoalim. "If two years ago the average loan was about 350-400 thousand shekels, today there are approximately -600 thousand shekels. This could be the reason for the dramatic increase in the total amount borrowed public in August."
In recent months the Bank of Israel tries to stop the sharp surge in apartment prices, stands at about 30% by the Bank of Israel. In early July's order took effect the Supervisor of Banks Rony Hizkiyahu, tough requirements in relation to mortgage banks given high leverage. According to the directive, from July 1, banks were required to make additional provision of 0.75% of outstanding mortgages can be attributed to financing (loan relative to property value) higher than 60%. Also on June 22 announced that the Tax Authority will stop purchasing groups enjoy tax benefits.
However, despite the new regulations in July and August were still in high performance mortgage industry. Hezekiah previously hinted that if the mortgage market did not catch a cold as a result of his teaching, he would consider additional measures. Bank of Israel Governor Stanley Fischer said last Sunday on real estate prices that if the government fails to take measures to increase housing supply to lower the price, the Bank of Israel will consider further action.
The greatest danger Interest
But Langermann doubt autumn weather did Icnene the housing prices. "Although September is traditionally weak because of the holidays, especially this year, Achsahahgym ate in many workplaces," says Langermann. "But early October noticeable surge in the mortgage market compared with recent times. If the intent of the relevant bodies would cool the market, it is not felt. During the summer, from June, you could feel quite a lot of uncertainty of Connie apartments, really thought the government promises to release land for construction large-scale Israeli bank activities greatly affect the price and stop the increases. but stopped to wait for buyers, sellers began to raise prices. "
According to Gold, the main reasons for the strengthening of the real estate market in recent months they increased investor activity and interest, is still lower than recent years. Langermann adds that the issue of interest is the main danger in the market. "In recent months, and now, on taking mortgages to be very careful to poor planning, not assume that similar levels of interest rates will remain current levels, "she says." We are working for months to protect ourselves and customers' interest levels change drastically. We understand that changing the image in this area could lead to a dramatic reduction in their repayment ability. "
However, gold does not see a danger to the public that a bank operating in borrowed more money from the bank. "We look at our borrowers also examining the loan in accordance with the Asset enslaved," says Gold. "This knowledge helps us to take as few risks. Bank of Israel issued the last orders to prevent future risks, and proper action, but now I do not think that the level of risk has changed a lot. However, there's still room for further actions the state's property market cooling . Rise in prices is not good for the market, there are more tools like increasing the land supply, need to seriously consider real estate prices will go down. "
