Emek refayim house real estate 311.
(photo credit: Uriel Messa)
The housing market cooled down in July as the number of home purchases fell 12
percent and home prices declined 1%, the Finance Ministry reported
“There are signs of a cooling down in the housing market
following a slowdown in the number of home purchases and a decline in the price
of new homes in July,” the ministry said in its “Red Lights” economic survey for
During July, the number of home purchases dropped 12% compared with
June and 10% compared with the same month last year. Secondhand home purchases
fell 18% compared with June.
Purchases of new apartments increased 11%
compared with June, mainly due to more robust sales in the center of the
country, while elsewhere transactions were down, the report said.
number of new-home purchases rose 184% in the center of the country, which The
Finance Ministry attributed to a large housing project for current and former
members of the security forces.
Although the report did not name the
project, it was referring to July’s “One & Only” sales promotion in Petah
Tikva marketed by Gindi Holdings, during which 519 apartments worth a total of
NIS 755 million were sold in just one day.
New-home purchases declined
25% in countrywide, the report said.
The median home price fell 1% in
July compared with June.
The decline in home purchases and property
prices follows the recent announcement by the Bank of Israel of a number of
directives to cool down the booming real-estate market. The new regulations for
mortgages, which came into effect in July, made loans more expensive for home
buyers seeking a mortgage of more than 60% of the value of an
The July findings point to a continued slowdown in the rate of
apartment purchases by investors from the beginning of the year in almost all
areas of the country, especially in Tel Aviv and the Sharon area, following an
increase since September, which had led to an increase in property prices, the
report said. Apartment sales by investors in the Beersheba area rose, the report
Bank Hapoalim’s Mishkan Home Buyers Index for July, which monitors
the financial conditions affecting home buyers, was down 0.5%.
decrease is mainly due to the continuing increase in home prices in recent
months, Bank Hapoalim said. The index has declined 19% since July
Home prices over the past 12 months rose 21.9% in nominal terms and
19% in real terms, the Central Bureau of Statistics reported.
mid-2007 home prices rose 48% in nominal terms and 32% in real terms.