Tel Aviv apartment 311.
(photo credit: Courtesy)
The average price for a fourroom apartment increased by 1.9 percent in the
second quarter, the Justice Ministry’s Real Estate Appraisal Department said
Prices rose in 11 of the 16 cities surveyed, climbing 6% to an
average NIS 2.44 million in Tel Aviv, 5% in Modi’in and Eilat, and 2% in
Jerusalem and Beersheba.
They were unchanged in Petach Tikva, Rishon
Lezion, Ashdod and Ramle, and fell by 3% in Herzliya.
rose by just 1% compared to the corresponding period in 2011.
economic instability, government and Bank of Israel measures and declarations,
as well as protests over the cost of living, all affected the housing market in
the past year, according to Real Estate Appraiser Tal
“Inelastic demand that accumulated during the past year began
to free up in the second quarter. This was partly due to government decisions on
the Trajtenberg Report’s housing chapter late in the preceding quarter, which
reduced uncertainty,” Alderoti said.
The Treasury released data Sunday
which seemingly contradicted the appraisal department’s findings. Home prices
actually fell 0.6% in June following a similar decrease in May, according to its
monthly report on the economy, marked by decreases of 2% in Jerusalem and 1.1%
in central Israel (excluding Tel Aviv).
Real Estate transactions rose by
an unusually large amount in June, the Treasury report said, increasing an
annualized 15% across the country and 30% in central Israel (excluding Tel
Aviv), but only 7% in Tel Aviv.
There was a 52% year-on-year increase in
housing purchases made by young couples.
The Treasury report was negative
overall, pointing to a widening trade deficit and worsening manufacturer
sentiment, in addition to rising unemployment and falling workforce
Exports fell 11.9% in dollar terms in June (excluding
ships, planes and diamonds), while imports dropped 4.3%, the report said. The
trade deficit would have widened even further if not for a substantial increase
in purchases of start-ups by foreign investors, which appear in the data under
exportation of services.
Last week, the Israel Export Institute (IEI)
warned that local manufacturers might have no choice but to move their
operations abroad if the government does not step in with a solution. Exports
dropped 7.5% in the second quarter to $11.2 billion, due mainly to a 14%
decrease in sales to the European Union, according to the
Unemployment rose to 7.2% in June from 7.1% the previous month,
while workforce participation fell to 63.5% from 63.3%, the Treasury report
In a bad sign for the future unemployment rate, the Purchasing
Managers’ Index decreased for the sixth time in eight months, indicating an
expected contraction in industrial activity.