The Times of IsraelEconomy
Israeli Housing Prices Continue Downward Trend Amid Economic Factors
Summarized from The Times of Israel by baba
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Average home prices in Israel fell by 0.6% in July-August 2026 compared to the prior two months, and 1.8% year-over-year, according to the Central Bureau of Statistics. The housing market slowdown is linked to the ongoing war, high interest rates, and ample new housing supply. Transaction volumes in August were among the lowest since 2000, though new subsidized apartment sales increased. Prices declined in most major cities, with the exception of Haifa.
The story in 6 lines · by baba
- Average Israeli home prices dropped 0.6% in July-August 2026 and 1.8% year-over-year.
- The housing market slowdown is attributed to the multifront war, high interest rates, and excess new housing.
- August 2026 apartment sales volume was one of the lowest recorded since 2000.
- Prices fell in most major cities, including Tel Aviv and Jerusalem, but rose slightly in Haifa.
- The Bank of Israel maintained interest rates at 3.25% while projecting strong economic growth.
- New subsidized apartment sales increased in August, while secondhand sales and investor activity decreased.
The Times of Israel publishes in English. The key points are summarized above. Read The Times of Israel’s full report from the link at the top of the page.