More Israelis Selling Homes at a Loss as Market Corrects
Translated & summarized from TheMarker by baba
The story in 4 lines · by baba
- Apartment sales at a loss have quadrupled since 2022.
- Investors who bought at peak prices are cutting losses.
- Demand for apartments with protected rooms is a factor.
- The market is experiencing a correction similar to the stock market.
An analysis of apartment sales since 2022 reveals a fourfold increase in properties sold for less than their purchase price, according to data from 24 cities. The primary drivers for these losses are investors who bought at peak prices and are now cutting their losses, alongside a trend of people moving from older apartments to those with protected rooms (Mamad).
The past one to two years have served as a reminder that, unlike the previous two decades, apartment prices can indeed fall. Many investors, both large and small, who believed that simply buying an apartment would guarantee a profit upon resale after a few years have learned this is not necessarily the case. The situation is described as a correction akin to the stock market.
