told you so
The Bank of Israel is easily the most professional and apolitical of all the government agencies in Israel. Indeed, it is one of the most well-respected central banks in the world. Their assessment should not be taken lightly:
Put simply, the Government's efforts to reduce housing costs are ineffective at best and counterproductive at worst. Housing prices aren't coming down anytime soon.
update: The minister of housing makes confusing remarks in which he attempts to stress the importance of current government programs while simultaneously acknowledging they probably won't affect housing prices: http://www.globes.co.il/en/article-housing-minister-lowering-prices-is-not-my-target-1001114979