Israel’s housing market
Philip Hemmings, Head of Israel Desk, Economics Department, OECDGlobes Conference December 2011
The market has turned around
An unusual history of price developments
A small upswing in prices compared to some markets
No (very loud) alarm bells (yet) in other indicators
Conservative mortgage lending
• Virtual absence of securitisation
• Low loan-to-value ratios
Possible contingency measures
• Reversal (perhaps partial) of macroprudential measures
• Tempering of efforts to encourage new housing construction
Distinctive features of Israeli housing support
• Unusual objective function
• Highly centralised
Notable common challenges in housing support
• Diversion of support
• Mobility traps
• Coherence with other benefits and the tax system
The in-depth chapter recommends
• A simpler and more transparent system
• Some specific adjustments to help make better use of spending
Thank you!