Israeli Housing Market Sees Slow Sales in Select Neighborhoods
Translated & summarized from Ice by baba
Housing prices are falling in specific Israeli neighborhoods due to high supply and low demand, causing extended sale times. Data shows apartments in 10 neighborhoods now take over four months to sell, with three located in northern Israel. Tel Aviv's Old North offers the highest discount at 6.6%, while Beer Sheva's Aleph neighborhood sees sales take over 140 days.
The story in 6 lines · by baba
- Housing prices are declining in select Israeli neighborhoods due to oversupply and reduced demand.
- Ten neighborhoods now see apartments taking over four months to sell, with some exceeding five months.
- Three of the top four neighborhoods with slow sales are in northern Israel: Kiryat Motzkin, Nahariya, and Kiryat Ata.
- Tel Aviv's Old North offers the highest discount at 6.6%, despite shorter selling times.
- Beer Sheva's Aleph neighborhood experiences sales exceeding 140 days, with low discounts.
- Slower sales are attributed to high investor supply and demand for units without protected rooms.
Certain neighborhoods across Israel are experiencing significant drops in housing prices due to a surplus of available properties and a lack of demand, leading to extended selling times. Data from Madlan reveals the top 10 neighborhoods where apartments take longer than four months to sell, with some exceeding five months. Three of the four leading neighborhoods are located in northern Israel: Kiryat Motzkin, Nahariya, and Kiryat Ata. In Kiryat Motzkin's "Meshanot Ha'Omanim" neighborhood, a high supply of apartments for sale results in slower sales, with an average price reduction of 5%. In contrast, central Nahariya sees apartments selling in about 154 days, but with a larger discount of 6.3%. The neighborhood with the highest discount percentage is in Tel Aviv's Old North, where apartments are discounted by 6.6% despite selling in a shorter period of 133 days, attributed to strong demand. Beer Sheva's neighborhood Aleph, previously noted for minimal price reductions, now shows apartments taking over 140 days to sell. This slowdown is linked to a high supply of apartments for investors and slower sales of units without protected rooms (ממ"ד), despite a small average discount of only 20,000 shekels (2.2%).