Israel's Housing Market Shows Recovery, Contrary to Collapse Fears
Translated & summarized from Ice by baba
Israel's housing market has shown a recovery, with sales of approximately 24,200 apartments between June and August, an 11.1% increase from the previous quarter. New apartment sales surged by 24.9% year-over-year, indicating a strong comeback for contractors. Despite this rebound, a significant inventory of 85,680 unsold apartments remains, with an estimated 26.7 months to clear.
The story in 5 lines · by baba
- Israel's housing market saw a recovery with 24,200 apartments sold between June and August.
- Sales of new apartments increased by 24.9% compared to the previous year.
- The Central and Southern districts led in overall apartment sales.
- Approximately 85,680 unsold apartments remained at the end of August.
- It is estimated that 26.7 months are needed to sell the remaining inventory.
Contrary to recent warnings of a collapse in Israel's housing market, new data from the Central Bureau of Statistics (CBS) indicates a significant recovery. Between June and August, approximately 24,200 apartments were sold, marking an 11.1% increase compared to the previous three-month period and an 8.1% rise from the same period last year. This surge suggests that contractors have resumed sales at a robust pace.
New apartments accounted for 41.8% of all sales during this period, totaling around 10,110 units. Sales of new apartments saw an 11.6% increase from the prior quarter and a substantial 24.9% jump compared to the previous year, indicating a strong comeback for developers. Approximately 35.8% of these new apartments were government-subsidized.
Second-hand apartment sales also rose by 10.8% compared to the previous quarter, though they experienced a slight 1.4% decrease when compared to the previous year. In August alone, 7,370 apartments were sold, with new apartments making up 45% of that total.
The Central and Southern districts led in overall apartment sales during the June-August period. For new apartments, the Southern district was the strongest, followed by the Central and Tel Aviv districts. The Central district also led in second-hand apartment sales.
Despite the recovery in sales, a substantial inventory of unsold apartments remains. At the end of August, there were approximately 85,680 unsold apartments, with an estimated 26.7 months needed to sell them all. Jerusalem and Tel Aviv-Yafo have the largest number of unsold apartments among major cities, while several smaller cities also have significant unsold stock.
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