After months of shekel strength, Bank of America believes the tide may be temporarily turning. The bank says the shekel has become overvalued and expects the U.S. dollar to strengthen against it, driven by a stronger dollar globally and weaker equity markets. Experts predict that the rate will have a bounce by the end of summer (some anticipating the dollar-shekel rate to move over 3.1) – though the upward trend is not expected to last as economists anticipate the rate to go back down to 3.05 by the last quarter and down further to around 3.0 by the start of 2027.

What does this mean for Modiin real estate – for people planning a housing purchase in the coming months, they should be ready to convert their dollars in the coming weeks when the rate does a bounce up (in real terms - every 10 agorot increase in the dollar adds roughly 100,000 shekels in purchasing power on a 1 million dollar property purchase). While no currency forecast is guaranteed, a stronger dollar could make buying a home in Israel significantly more affordable for those bringing funds from abroad. 

If you want to touch base with a foreign exchange professional now so you are ready to move funds when the time is right, message me for a recommendation of a trusted professional. And if you want to discuss what this means for your home-buying or selling goals, always happy to meet for an iced coffee and brainstorming.