Bank of Israel Governor Amir Yaron is signaling that if inflation remains under control, the Bank of Israel may cut interest rates sooner and more aggressively than its official forecast currently suggests. This is generally viewed as positive news for borrowers and for economic activity.
This is a notable shift because the Bank of Israel's current forecast projects that the policy rate will decline gradually to 3.5% over the next year. Yaron's remarks indicate that if inflation trends continue to improve, the central bank may choose to accelerate the pace of rate cuts and reach a lower rate sooner than currently anticipated.
And for the housing market lower interest rates on mortgages should stimulate more activity. The shekel remains strong, though the dollar bounced from 2.81 to 2.85 after this news.
~~~~~~~~~~~~~~~~
Translated from Modiin News (June 14th):
Data from the Yad2 real estate website reveals that in recent months, demand for apartments in Modiin has increased by 9.1%, while supply has declined by 9.3%, effectively turning the local market into a “seller’s market.”Yad2’s “Heat Index” ranks Modiin at the top of the list of Israeli cities where the gap between demand and supply has shifted market power into the hands of sellers.
According to the published data, Modiin ranks first in Israel with a score of 95.2, followed by Beit Shemesh, Sderot, and Kiryat Motzkin. The report also states that demand for apartments in Modiin has risen by 9.1% in recent months, alongside a 9.3% decrease in the number of apartments available on the market.
It was also recently reported that 204 second-hand apartments were sold in Modiin during the first quarter of the year, representing an 18.6% increase compared to the period between October and December 2025, when 172 apartments were sold. This places Modiin 17th nationwide in terms of second-hand apartment sales.The figures come from a new report by the Israeli Central Bureau of Statistics, which also reveals that Modiin is the largest city in Israel (with a population exceeding 100,000 residents) with the fewest new apartments remaining for sale—just 241 units.
Compiled by Rebecca Franks, HaBayit Shelanu (058.771.1523) based upon first-hand knowledge and reports published in Israeli and Anglo press including - Globes, Calcalist, Ynet, Haaretz, Jerusalem Post, Modiin News.
Feel free to message me directly to discuss how these market updates affect your buying/selling plans in Modiin.
