Concern for fair prices in the Israeli housing market

The results from 487 questionnaires of the reactions of consumers and sellers to price changes in the Israeli housing market show that the concern for fair prices exists by the purchase of homes. The survey results also show that consumers view price increases due to increases in costs as unfair if their only knowledge of the change in costs is from the seller. A classification of consumers' reactions to price increases is developed based on the rationales for the price increases. In addition, the survey results demonstrate that sometimes sellers consider the price that they receive as unfair.