The dollar-shekel reached an over 30 year low today of 2.9 !!! The last time the dollar-shekel fell below 3 was in 1993…

For many international buyers that has driven them out of the real estate market, but in fact, this might be a window of opportunity for savvy buyers ready to move quickly. 

The current rate of 2.9 is making the Bank of Israel uncomfortable. The Bank is not going to buy Dollars and that leaves it with only one other tool to help the economy - lowering the Israeli interest rates. 

Lowering the rates by 0.25% will not have any meaningful effect so the Bank of Israel is seriously considering lowering the interest rates by 0.5% on May 25th. 

IF this happens it will likely drive the Dollar back to 3 and maybe even up to 3.1. 

The Israeli Stock Exchange is breaking new records every day, the Shekel is very strong and the next thing to recover will be real estate. After a year of stagnation, the real estate market will start to wake up and prices will likely start to edge up.

 How can buyers use this juncture to their advantage? 

Currently, there are some good deals on the market – properties that have been sitting longer than normal, sellers who are more stressed to sell as we approach the end of the current real estate cycle. If a buyer finds a property that they like now, at a competitive price and gets an accepted offer – they can lock in a great price. Then, if the interest rate goes down by 0.5% buyers will have enjoyed a good purchase price, a slightly higher dollar rate and a lower mortgage rate. 

If the interest rate does not go down then the Dollar will likely keep dropping so it's still better to close a deal at today's rate than to wait and buy after real estate prices go up and the dollar drops even further....

Another great option is to buy on paper. Some developers offer great payment structures whereby you can buy with as little as 10%-15% today and the rest in two years from now (not attached to any building interest) so you could lock in a home at today’s price and pay the balance in a couple of years when the interest rates will be lower.

If you want to discuss the Modiin real estate market further and how you can use this current juncture to your advantage, always happy to meet for coffee and chat about real estate opportunities...

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.