Israel's Statistics Bureau Launches New Housing Price Index

The Central Bureau of Statistics (CBS) is set to release a new housing price index this week, beginning with August data on Tuesday. This new index will specifically track prices for second-hand apartments, offering a quarterly breakdown that includes regional data. Previously, the CBS published two main housing market indices: a general index and an index for new apartments.

Recent years have seen increased criticism that the existing indices do not accurately reflect actual market prices, particularly due to the prevalence of financing deals and incentives offered by developers for new apartments. Dr. Doron Segev, head of housing at the CBS and co-developer of the new index, highlighted its advantage: it is free from the influence of financial promotions and other real estate developer incentives. "In second-hand apartments, there are no benefits. A private individual won't give you flight points, vacations, or anything else," Segev explained, adding that this makes the index particularly relevant during the current market conditions. He believes the index will provide a valuable, independent perspective on market trends, unaffected by developer financing schemes.

The new index will be released with a one-month delay compared to other indices, as it requires the inclusion of complete transaction data. This adjustment allows for more comprehensive reporting. This initiative aligns with recommendations from the Public Council for Statistics and is part of the CBS's ongoing efforts to enhance its housing data. In recent years, the CBS has significantly improved its housing statistics, developing the new apartment price index, introducing an annual land price index, and expanding data analysis on transactions, including those for second-hand homes.