http://modiinfo.com/index.php/hot-topics/local-news/612-2008-modiin-population-census-data

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Buy-It In Israel real estate website has just launched the first purchase tax calculator in English on the Internet.

A 6.5 room duplex on Esther Hamalka was recently sold at 2,290,000 NIS and a 6 room semi-detached house closed at 2,400,000 NIS.  Rumor has it that a house on Yael Hagibora was also sold at 3,200,000 NIS.  This house is extremely well upgraded and “mushka” (heavily invested in).  A Tzarafti house on Shimon was rented out lasted month for almost $1800 per month.

What these prices are telling us is that Modi’in real estate and more specifically Buchman real estate is not going down.  Property prices are on average 10% higher than last year’s prices and while we are still in the winter months, that figure could climb further.

Two new housing projects in Buchman are in the works and marketing is anticipated to begin during the next few months.  Prices are expected to start in the mid-two million shekel range and reach the low 3’s.  These are the last 2 plots of land in Buchman and after that, that’s it! This means that anyone that wants to buy a house in Buchman, off-plan, has 2 more chances.  The Kablanim paid hefty prices for the land and obviously want to make huge profits too.   Once these projects are sold off, the second-hand market for Buchman real estate will likely continue to fly as no new options will be available.

Obviously, high prices turn some potential buyers away and send them to places they may not have otherwise considered, however, people that want to stay in Buchman AND realize the potential for real estate appreciation in the area AND can afford the current prices, somehow adjust to the reality and deal with the situation.

The only thing I see as a possible cause for prices coming down in Buchman is a continuous rise in interest rates which 1. could prohibit the borrowing power for many buyers and reduce their buying budget significantly and 2. cause homeowners to sell if they cannot afford their mortgage repayments.

Lastly, an observation I have made is that unlike previously where almost all of my “sellers” were Israeli clientele, this year approximately 50% of clients looking to sell their property in Buchman are Anglos.  My feeling is that this is a natural phenomena since Anglos started buying in Buchman about 6 or 7 years ago.

With regards to rentals in Buchman, it is still too early to say anything as the market for rentals generally picks up in the spring season.  However, as usual, I suspect demand will be higher than supply for good quality homes that are available for long-term rent.  I will of course write an update as and when there is relevant data.

As always, please feel free to email or call if you have any questions or comments or if you would like to see some properties on the market in Buchman.