There is No Real Estate Bubble in Israel

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Bubble or problem?

A real estate bubble occurs when the funding provided by a financial institution for the purpose of property acquisition is significantly higher than the property's actual value and involves a high level of risk. The bubble bursts when borrowers default on loans they were unable to repay in the first place. Housing supply increases substantially in a short period of time, causing housing prices to decline. The gap between the property's value and the funding widens, leading to substantial financial losses that affect the stability of the accompanying entities and may even lead to their collapse.