The Bank of Israel and the Ministry of Finance should be concerned over the findings published by the Government Assessor Eyal Yitzhaki on Monday in a survey of four room apartments for the fourth quarter of 2010 that shows real estate prices continue to rise. The average nominal price of four-room apartments in the cities covered by the survey rose 3.8% in the fourth quarter. The Consumer Price Index (CPI), excluding the housing item (rent), rose by 1% over the same period. The average nominal price of four-room apartments was 13.7% higher than in the corresponding quarter of 2009, and 29.4% higher compared with the fourth quarter of 2008. Yitzhaki noted that, during the fourth quarter. The Bank of Israel raised the interest rate and imposed restrictions on mortgages in an effort to reduce demand for homes. However, improving economic indicators and continued growth are boosting housing demand.
