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Israel Unlikely Champ in Global Real Estate

Despite Israel's troubles, its real estate is on a world-class roll _ fueling talk of bubble

In this photo taken on Tuesday, Feb. 16, 2010, an Israeli solider walks past a poster advertising a... Expand
(AP)

If prices continue to rise at the current pace, however, "it will start to bubble," she said, while predicting that price rises would taper off as supply increases and interest rates climb.

There are signs that might already be happening: Shekel-denominated prices in the second quarter of the year inched down 1 percent from the first quarter.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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