Mizrahi Tefahot VP: Home prices won’t fall

“In my view, home prices won’t fall; they’ll be stable. Consistently, for years, there has been a gap between the number of households forming and building starts. We have a cumulative shortfall of 90,000 housing units,” said Israel Engel, vice president and head of retail banking at Mizrahi Tefahot Bank (TASE:MZTF) at he “Globes” Israel Real estate Conference.

“Besides that, we are seeing that construction times have lengthened, whether because of the lockdown or because foreign workers are not being brought in,” Engel continued. “Construction time has reached 31 months, which clearly affects the supply of housing. We are seeing growth in investment in real estate. This is clearly a factor causing housing prices not to fall.”

Engel began by saying that he would try to answer some questions that concern people involved in real estate, such as how it is that mortgage taking has risen despite the

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