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Unfortunately, neither the Wisconsin Legislature nor Congress have shown any interest in doing so. oakley sunglasses outlet The local real estate market is going through turbulent times. Demand for housing is greater than the supply – i.e., housing starts – consequently, prices are constantly rising. A study by the Central Bureau of Statistics (CBS) showed that average real estate prices for the 2008-2010 period rose by 43 percent and by more than 60% since mid-2007. According to the RE/Max real estate brokerage network, average real estate prices rose nationwide by 14%. Single-family homes in the southern districts rose by 25%.These are hefty price rises; consequently, it has become a social issue because the number of people who cannot afford to buy an apartment is growing daily.And with good reason. While average real estate prices have risen by 14%, average salaries have risen by just over 6% in nominal terms and by 3% in real terms.As rising real estate prices have become a major social problem, they have also become a major political problem. Recently Interior Minister Eli Yishai, who is also the head of the haredi political party Shas, threatened to leave the coalition unless the government addressed the problem of rising real estate prices.Prices are rising because supply of new housing falls short of demand. Approximately 38,000 households are created every year. This includes newlyweds and singles leaving the parental home. To this is added demand by overseas buyers and properties gone derelict -- another 3,000, which amounts to approximately 41,000 in all.During the past 10 years, housing starts have amounted to only 316,942, or an annual 31,694 on average -- a 10-year shortfall of 93,058 dwellings.These figures explain why prices are rising constantly.In 2010, prices rose by 14%. Bernard Ruskin, general manager of RE/Max Israel, believes that in 2011 prices will increase on average by up to 11%.“The government is taking steps to increase supply, but these measures will only be felt in two or three years. In 2011 demand will still outstrip supply; therefore, prices will continue to creep upwards.â€Renewed demand in Q4 2010 According to figures published recently by the Finance Ministry, demand for real estate during the fourth quarter of 2010 increased substantially and reached the levels obtained in the third quarter of 2009. This amounted to 28,600 -- a rise of 11% compared to 23,000 in the preceding quarter. This includes all real estate transactions, such as apartments sold to buy larger accommodations and the acquisition of both new and secondhand housing. During the first three quarters of 2010, demand had moderated and there were hopes that the fall in demand would dampen the rise in prices. But the figures for the fourth quarter proved that demand is on the rise once again, despite all the efforts of the Finance Ministry, the Housing Ministry and the Bank of Israel.The efforts of these government bodies are being neutralized by strong renewed investor demand. This may be explained by the low interest levels and the low yields in other types of solid investments.In the fourth quarter of 2010, real interest rates had fallen to 1%, which meant that the yield on bank deposits or on savings accounts was very low -- 2% to 3% at the most.The yield on real estate investments was much higher.The interest rates levels have a significant bearing on investor demand.In the fourth quarter of 2008, the real interest rate was 3.5%. During those three months, investors acquired 5,000 apartments. By the third quarter of 2009, real interest rates had fallen to minus 1.8% and the amount of apartments acquired by investors shot to over 9,000. In the fourth quarter 2010 , the number of apartments acquired for investment purposes amounted to 8.648 -- a rise of 9.7% compared to the corresponding quarter of 2009 and a rise of 32% compared to the previous quarter.Investor demand is influenced by real estate prices and by prospective yields -- i.e., rentals. That is why demand in Haifa and Beersheba is so high.During the last quarter of 2010, the number of apartments acquired in Beersheba amounted to 4,094 -- a rise of 29.4% in relation to the corresponding quarter in 2009 and by 23.8 in relation to the third quarter. In Haifa, the number of apartments acquired amounted to 4,169 -- a rise of 9% compared to the corresponding period in 2009 -- and by 20.7% in the previous quarter. Investor demand in these two cities is abnormally high: 1,411 in Haifa, which adds up to 33.85%; and 1,373 in Beersheba, or 33.54% of all apartments acquired during that period. In relation to the third quarter of 2010, investor demand in the fourth quarter of 2010 rose by 33.3% in Beersheba and by 31,000 in Haifa.The reason for the popularity of Beersheba and Haifa among investors is price. In Haifa, the average price for a three-room apartment is NIS 600,000. In Beersheba it is NIS 400,000. 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