Israel Sees Early Signs of Recovery in New Home Sales After Market Slump

Data released by the Central Bureau of Statistics (CBS) and the Chief Economist's Office at the Ministry of Finance indicate initial signs of a turnaround in Israel's real estate transactions after a prolonged period of stagnation. Between March and May 2026, approximately 21,390 homes were sold, marking a 10.6% decline compared to the previous quarter (December 2025 to February 2026). However, after adjusting for seasonal factors, there was actually a 2.4% increase in overall home sales.

Specifically, sales of new homes rose by 0.4% compared to the prior quarter, and when seasonal adjustments are applied, this increase becomes much more significant at 20.6%. Compared to the same period last year, new home sales grew by 8.2% in raw figures and by 17% after seasonal adjustment. These statistics suggest a potential recovery in the housing market, particularly in the segment of newly built properties, following a lengthy phase of market inactivity.