Housing prices falling overall, rising in some regions

Housing prices in Israel are falling. But while three regions are dragging down the overall average, prices are actually rising in the three other regions.

Since October 2022, the Central Bureau of Statistics Housing Price Index has risen very slightly but since March 2023 housing prices have fallen 0.8%. Tel Aviv District leads the declines, especially in April and May and since January 2023, prices in Tel Aviv District are down 2.8%.

In the Central District, prices continued rising until the beginning of 2023, and since then have fallen by 2.5%. In the Southern District, prices had fallen 2%, but in the last two months have stabilized and are down 0.6% this year.

In the Northern District, housing prices have risen 3% during 2023, and this after the increase had already reached 4.5% in February, but since then it has moderated; In Jerusalem District prices are up 1.8% since January, and in the Haifa District housing prices are 1% higher this year.

In Tel Aviv housing stock will suffice for three years

The three districts where price falls have been recorded (Tel Aviv, Central and South) are the largest, the most built up and are the districts with the biggest number of deals. In Tel Aviv and the Central Districts, the largest falls in the purchase of new apartments was recorded in the first half of 2023 compared with the first half of 2022: 56% in Tel Aviv and 48% in the center.

The Southern District recorded a smaller fall of 21%, and is currently the leading district in terms of new apartment sales. But the pace of construction is faster today, and at the end of June of this year there remained a stock of 11,000 unsold new apartments.

According to the rate of sales today, this is a stock that will suffice for another 18 months, and is continuing to rise. Almost 20% of the supply of new apartments in Israel is in this district, and its situation is relatively good compared with the other two districts where apartment prices have fallen.

Tel Aviv has a stock of more than 17,000 homes, which is enough for almost three years. In the Central Region there are about 14,000 new, unsold apartments, a stock that is enough for about two years; in the North (stock of 3,700 homes), in Jerusalem (6,200) and in Haifa (4,200) – enough for a year.

Published by Globes, Israel business news – en.globes.co.il – on September 11, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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