Even though the Israeli real estate market has barely taken a hit in the current economic slowdown, Israeli consumer confidence has. That must be a reason to explain why fewer and fewer Israeli’s are looking to make real estate purchases.

According to Globes: “The economic uncertainty has caused Israelis to defer dreams of buying a first apartment or moving to a new one. In April, 6.6% of Israelis said that they planned to buy a new or second-hand apartment in the next six months, compared with 7% of Israelis in March, according to the Consumer Confidence Index, compiled by Globes Research and Kesselman and Kesselman - PricewaterhouseCoopers Israel. This is the lowest level since January 2009, and before that - in January 2006.

The low level of planned home purchases in April is unexpected, since the Consumer Confidence Index jumped in April to 76.1 points, its level before the collapse of Lehman Brothers in September 2008.”

Let’s see if this lower demand will translate into lower home prices.

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