Israel's housing market remains weak

Israel's housing market remains weak, according to Global Property Guide.

The site's report for the second quarter of 2012, which compared house prices around the world, found that in Israel, the average price of owner-occupied housing dropped 1.52% year-on-year. However, owner-occupied housing prices increased 1.44% during the three months.

The slowdown in the housing market is mainly due to rising unemployment, to steps taken by the government and the Bank of Israel, and to domestic social unrest over rising cost of living. In addition, worsening global economic uncertainty has not helped.