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

In this photo taken on Tuesday, Feb. 16, 2010, an Israeli solider walks past a poster advertising a construction project of a luxury apartment building in Tel Aviv, Israel. Israel, despite perennial fears of war, has emerged as one of the hottest, and unlikliest, property markets in the world: Since real estate collapsed around the world in 2008, few if any countries have seen house prices rise faster. (AP Photo/Ariel Schalit)

(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.
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