Israel's Housing Market Shows Mixed Trends with 23% May Sales Surge

The Israeli Central Bureau of Statistics released data for March to May 2026 showing a complex picture in the housing market. During this period, approximately 21,390 apartments were sold nationwide, marking a 10.6% decline compared to the previous quarter. However, after adjusting for seasonal factors like holidays, a slight increase of 2.4% was observed. Compared to the same period last year, sales dropped by 5.7%.

The market remains divided between new and second-hand apartments. Second-hand apartments accounted for 58.4% of transactions (12,480 units) but experienced a significant 17.2% decrease from the prior quarter. New apartments made up 41.6% of sales (8,910 units), with nearly 29% sold under government subsidy programs. After seasonal adjustments, new apartment sales surged by 20.6%. In May alone, 8,350 apartments were sold, including 3,700 new and 4,650 second-hand units.

Inventory of new apartments reached a record high of about 84,130 units by the end of May 2026, continuing a steady rise since April 2022 at an average monthly rate of 1.4%, though stabilizing somewhat since December 2025. Jerusalem and Tel Aviv led in new apartment availability, with 10,368 and 9,811 units respectively, followed by Bat Yam, Haifa, and Netanya.

Geographically, the Central and Southern districts dominated real estate activity. The Central district accounted for 24.4% of all transactions and led new apartment sales with 24%, while the Southern district held 21.2% of total sales and 23.2% of new apartment sales. For second-hand apartments, the Central district maintained a 25.2% market share.

These figures suggest a strengthening in new apartment sales despite a decline in second-hand transactions, with a substantial supply of new housing units available in major urban centers. The market's future trajectory will depend on how these opposing trends evolve.