An analysis by Geocartography Knowledge CEO Dr. Rina Degani on the eve of the tent protest found signs that the government's recent measures are having a major effect on the real estate market. Demand for homes was 20% lower in July 2011 than in May, without taking into account the effect of the tent protest.
"We expect demand for homes to fall further in August, in view of the growing housing protest," said Degani today. "The people currently in the market are aged 18-34, and far fewer are older than 55. People with a university education are one-third more likely to be seeking a home than other groups. As one might expect, the level of demand for homes rises with the level of income, but the gap between the wealthy and low income-earners has greatly widened, and is now 260%, which indicates that low income-earners, who earn less than the average national salary, are finding it very difficult to buy a home.
Degani added, "New immigrants are very unwilling to buy a home. Interestingly, in the south, Jerusalem and its environs, and in Haifa and the north, demand for homes is higher than in the Sharon and Tel Aviv. This is partly due to the need of young people in the periphery to buy an apartment, whereas some residents in the Sharon, Tel Aviv, and its environs don’t necessary buy an apartment out of need, but to improve their residence or to buy for their children. In contrast to others, they can afford to sit on the fence and wait to what will happen in the market."
Degani said, "The proportion of people seeking better homes is a little less than a third. Demand for better homes is highest among people aged 35-54, the group of parents with children, and is relatively high among secular Jews. Demand for better homes is twice as high among the secular compared with the religious and haredim (ultra-orthodox)."
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