In the third quarter, Central Bureau of Statistics (CBS) reports show that began construction of 7790 houses in Israel only. This comes to an annual drop of 37% compared to the same period last year. Such a low figure recorded for the last time in the second quarter of 2009. Third quarter in 2011 was the stopping rise line in construction of houses in Israel across the country, which lasted five consecutive quarters, an increase of about 4.2% per quarter. Since this quarter, a decline of 6.7% in houses in Israel starts each quarter.

The start of the decline in houses in Israel is thought to be particularly harmful for homebuyers, due to the expected shortfall in the next two years. This is because approximately 44% of dwellings built in the first nine months of 2012 were built on privately owned land. In the North of the country the situation is even worse, there is 67% decrease in construction. The decrease in supply will lead to increased in prices.

Prominent cities in the opposite direction are Hadera, with an increase of 52% but a relatively small number of houses in Israel whose construction began in a small number of projects, and in Bet-Shemesh with double the number of dwellings started to be built in the city, especially for the the ultra-Orthodox.

This is the highest amount by 50% compared to the same month last year. Market estimates that in December is expected to be stronger than November. Banks estimate: Only in a few months we will know if the new restrictions implemented by the Bank of Israel are effective for the houses in Israel.

Even Operation “Amud Anan” could not cool the mortgage market. The first data revealed that mortgages for houses in Israel that were taken in November are estimated at NIS 4.2 billion. This is the highest amount by 50% compared to the same month last year and higher by 30% compared with October, which was the holidays month.

Estimates show that December is expected to be even stronger then November, because whoever presented the bank with an agreement, can take a mortgage for houses in Israel even if it does not meet the new limits of the Bank of Israel.

As mentioned, in the first month of the Bank of Israel limitations, still there is no noticeable effect, but it is too early to determine that they are not effective. Among banks is estimated that only in a few months it will be possible to evaluate if indeed the leverage limits cools the houses in Israel market. Industry sources believe that the beginning of the year is expected to see a decline in mortgage due to the fact that this is traditionally a weaker period, and because of anticipation of the Bank of Israel limitations to take effect.