Israeli Housing Prices Dip Slightly, Secondhand Market Sees Unexpected Rise
Translated & summarized from Ice by baba
Overall housing prices in Israel decreased by 0.2% in August-September, with a 1.5% year-over-year drop. The secondhand market unexpectedly saw price increases, while new homes continued to decline. The average housing price fell 5.7% in the third quarter to 2.286 million shekels. Tel Aviv remained the most expensive region, while specific cities like Bat Yam and Herzliya saw significant price drops.
The story in 5 lines · by baba
- Overall Israeli housing prices fell 0.2% in August-September, with a 1.5% annual decrease.
- The secondhand housing market unexpectedly saw price increases during the period.
- New housing prices dropped 0.7%, including a 0.7% decrease in subsidized units.
- The average housing price nationwide decreased by 5.7% in the third quarter.
- Tel Aviv remained the most expensive region with an average price of 3.46 million shekels.
Overall housing prices in Israel saw a slight decrease of 0.2% in August-September compared to the previous two months, according to the Central Bureau of Statistics (CBS). This brings the year-over-year decline to 1.5% when compared to August-September 2025. However, an unexpected trend emerged in the secondhand housing market, which experienced a rise in prices during the latest month, a development the CBS apparently did not anticipate. This contrasts with new housing prices, which continued to fall, even when excluding government-subsidized units. The decline in new homes was 0.7%, with subsidized apartments making up 41.8% of these transactions.
Regional price changes in August-September compared to July-August showed mixed results. Jerusalem remained unchanged, while the North saw a 0.4% increase. Haifa experienced an 0.8% rise, but the Center (-0.2%), Tel Aviv (-0.8%), and South (-0.6%) regions all saw price decreases. On a year-over-year basis, Tel Aviv (-2.1%), the Center (-2.0%), the South (-1.6%), the North (-0.3%), and Jerusalem (-0.1%) all recorded price drops. Haifa was the only region to see a year-over-year price increase, albeit a modest 0.3%.
The average housing price across Israel dropped by 5.7% in the third quarter to 2.286 million shekels, down from 2.423 million shekels in the second quarter. This average price is 1.5% lower than a year ago. Tel Aviv remained the most expensive region, with an average price of 3.46 million shekels, while the North averaged close to 1.5 million shekels.
Year-over-year average price changes showed decreases in the North (-2.9%), Jerusalem (-2.3%), and the Center (-1.8%). Conversely, Tel Aviv saw a 5.3% average price increase, followed by Haifa (3.3%) and the South (2.9%). Among the 18 most expensive cities, Tel Aviv (4.605 million shekels), Herzliya (3.593 million shekels), Ramat Gan, and Jerusalem had average prices exceeding 3 million shekels. Bat Yam (-8.5%), Herzliya (-7.2%), Jerusalem (-5.2%), and Rehovot (-4.0%) experienced the most significant average price drops. Tel Aviv (12.1%), Netanya (8.0%), Holon (7.3%), and Hadera (6.2%) saw the most notable average price increases.
