01871cas a2200241 a 4500 AALejournalIMF014216 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475590142 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Israel : Selected Issues. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (45 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper reviews the housing market in Israel. Property prices in Israel are currently about 25 percent above their equilibrium value, owing largely to low mortgage interest rates and supply shortages. Nominal housing prices have risen by 80 percent since 2007. In response to the global financial and euro area crises, the Bank of Israel engaged in two rounds of monetary easing. The monetary stimulus supported economic growth, but it also boosted demand in the mortgage and housing markets. The risk of a sharp correction in housing prices, while mitigated by the supply shortages, remains a concern and could have important macro-financial implications. To contain such risks, macroprudential policies should be further tightened. At the same time, concerted efforts should be made to alleviate supply-side constraints. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2014/048 Full text available on IMF http://elibrary.imf.org/view/journals/002/2014/048/002.2014.issue-048-en.xml IMF e-Library