Blog

Unlike the weather in Modiin, which doesn’t seem to be affected that much by the seasonal changes, the real estate market is experiencing a typical autumn term.  Following a busy and successful summer period, the market has once again lulled and very little activity is taking place.  In Buchman in particular, there are few buyers and even less (serious) sellers around.  The number of high quality homes for sale on the most desirable streets in North Buchman (Yosef, Shimon, Dan, Binyamin) can be counted on a finger or two, while similarly the real estate market in South Buchman shows no signs of much more life.  As I have implied in previous posts, most residents of Buchman are young families with school-aged children, therefore the majority of house move-in/outs are planned around the school year so as not to disrupt the kids studies.  Another possible explanation for the current lull is the general housing crisis in israel: shortage of new homes available to buy and over priced existing homes for sale.  This situation prohibits home owners from selling and moving on due to lack of alternative options and restricts buyers from purchasing at the high and prohibitive prices.  For Anglo buyers who’s money is in foreign currency, the situation is further worsened by the low exchange rates.

Last week, the Central Bureau of Statistics (CBS) published the 2008 population census data, which included a number of statistics about Modiin Maccabim Reut accurate until December 27, 2008.

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

©iStockphoto.com/Beyza Sultan Durna

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

Before we look at the outlook for the coming months, let’s take a look at some of the Buchman property deals that closed most recently:

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.

Buy-It In Israel, as it’s name implies, is a website serving the English-speaking community around the world with an interest in real estate in Israel. The new website offers you everything you need to know and everything you didn’t know about homes in Israel.  You can find all the new projects, real estate news, information, tools, and advice for helping you make sound decisions throughout the process of buying, building and maintaining a home in Israel.

All this is brought to you by the Editor, Debbie Goldfischer of Buchman Home Page, professional in-house staff and selected experts in their respective fields.  Buy-It In Israel skillfully blends together Debbie’s marketing expertise, real estate knowledge and professional relationships presenting you property in Israel like never before.

Keep up with the latest in Israel real estate from Buy-It In Israel, either subscribe to email updates or RSS feeds, follow Buy-It In Israel on Facebook and Twitter and feel free to comment, ask questions or seek further information.

Debbie Goldfischer, Founder and Editor, Buy-It In Israel

The dream of buying and owning a home in Israel can now become a reality. Whether it is a house to live in, a vacation apartment, a retirement residence, an investment property, or even a safe-haven, your new home in Israel will always be ‘home’.  So let Buy-It In Israel help you make the right move.

Prashkovski Investments & Construction Ltd. has won a tender from the Israel Lands Administration for the construction of 86 housing units in Modi’in’s exclusive area of South Buchman. The new Buchman real estate project will be built on a plot of land of 21,931 square meters in the area of South Buchman in Modi’in. Prashkosvski’s total investment in the project will amount to an estimated NIS 53 million out of which NIS 35.7 million are for the land purchase and NIS 17.2 million are budgeted for development costs of the housing units.

Read the full article.

For more information on this new project in Buchman, Modi’in, please email me at: debbie@buchmanhomepage.com

A glance at Israel’s business and economics news shows housing sales, nationwide,  have decreased over the past few months, and what with rising interest rates, it is predicted that real estate prices will begin to stabilize, if not fall, in the near future.   Despite this, Buchman homeowners continue to seek high and exorbitant sums for their homes, however, a closer look at how few  deals have recently closed indicate that the market is not as hot as sellers would like and that if they are serious about making a deal, they will have to come down in price sooner or later.

It’s been a while since I last wrote on this blog.  What with the closing of several deals at the end of the summer, settling the kids down in the new school year, and all of the chagim, it’s been difficult to find time to post.  Anyway, to be quite honest, there’s not too much to write about.  That’s because, as usual for this time of year, the market is slow.  There are very few serious vendors, and although there are some buyers around (albeit mainly Israeli), most are just looking and are in no hurry to sign on the dotted line.  American and British buyers have either slashed their budgets due to the economic downturn and the weakness of their currencies, or put a hold on buying for the time being.

I view this time of year as an opportunity to network, plan and strategize for next year’s busy season which is expected to arrive after the winter months.  I am also looking forward to meeting potential clients who are coming on pilot trips to scout out the area during the next few months.  Although these meetings, or rather consultations, can be time-consuming and often don’t culminate in a deal on my part,  I always enjoy meeting people that are planning Aliyah and feel a tremendous sense of responsibility  to help and guide them in choosing the right community and/or finding appropriate housing, even if it’s not in Buchman.

Four-room garden apartments in the Buchman neighborhood of Modi’in are the fastest-selling homes in Israel, with an average of four days on the market, according to a Levi Itzhak Assessing and Surveying Co. Ltd.survey for September 2009.  At the other extreme, apartments in Lod are slowest selling homes, with an average of 52 days on the market.  Click here to read the full article in Globes Online.

This seems to be a very common budget these days.  In dollar terms its in the low $500k range.  Well actually, you don’t have that many choices at this moment in time but I am pretty sure that more ‘stock’ will become available during the coming months. Basically, at the higher end of your budget, you’d be looking at a small/medium sized cottage in S.Buchman with a small garden that is fixed up and more or less ready to move in to. In N.Buchman, you may be able to get a Zilbermintz or Muller home on Shimon or Yehuda Street. The larger homes in North Buchman start in the high 2’s and low 3’s range.

If you do one of two things your options will be expanded: either consider buying a smaller home, like a 5 or 6 room duplex and you’ll be looking at prices more like 1.7-1.9 million shekels; or try and stretch your budget to 2.5 million and you’ll be looking at a more expensive range of homes.