Israeli Apartment Prices Continue to Fall, Down 1.8% Annually
Translated & summarized from Maariv by baba
Apartment prices in Israel have fallen by 1.8% over the past year, with the Central District seeing a 2.7% decrease. New apartment prices dropped 0.4% in July-August, but this figure sharpens to 0.8% when government-subsidized deals are excluded. The housing market faces challenges with unsold inventory and developer sales difficulties. The overall trend indicates prices have not yet returned to an upward path.
The story in 5 lines · by baba
- Israeli apartment prices decreased by 1.8% over the last year.
- The Central District saw the largest price drop at 2.7%.
- New apartment prices fell 0.4% in July-August.
- Excluding subsidized deals, new apartment prices dropped 0.8%.
- The housing market faces challenges with unsold inventory.
Apartment prices in Israel have continued their downward trend, with a 1.8% decrease recorded over the past year. The Central District experienced the most significant drop, with prices falling by 2.7%. Tel Aviv also saw a decline in apartment prices.
New apartment prices also decreased, showing a 0.4% drop in July-August compared to the previous period. However, data from the Central Bureau of Statistics (CBS) indicates a rise in government-subsidized transactions within new apartment sales, from 40% to 45.8%. When these subsidized deals are excluded, the decline in new apartment prices sharpens to 0.8%, highlighting their potential impact on the overall index.
These figures emerge at a time when the housing market is grappling with a large inventory of unsold apartments and developers are facing difficulties in sales. The nationwide price drops suggest that, at least on a national index level, apartment prices have not yet resumed an upward trajectory. It is important to note that the apartment price index is based on transaction comparisons, adjusting for differences in apartment quality, and thus may not reflect the price change of every individual apartment. Additionally, recent period data is considered provisional and subject to revision.
