The situation of homebuyers improved slightly by 0.2 points in May 2012, to 131.4 points, as the lower average mortgage rate and rise in the average national salary trumped the rise in home prices, according to the Mishkan Hapoalim Mortgage Bank Homebuyers Index.
The Central Bureau of Statistics reported that home prices rose by 1.4% in May, after remaining stable in the first four months of the year. Home prices rose 2.1% over the preceding 12 months.
"There were more purchases of homes and more mortgages were taken in the first half of 2012 compared with the second half of 2011, although they were less than in the first half of the year. Monthly data on home prices is very volatile and the sharp rise in home prices in the latest survey was surprising. It is hard to draw clear conclusions form these data, but it seems that the housing market has meanwhile stabilized, both in terms of prices and in terms of transactions," says Bank Hapoalim (TASE: POLI).
According to the Bank of Israel, the average mortgage interest rate fell to 3.2% in May from 3.34% in April, and, according to the Central Bureau of Statistics, the average national salary rose to NIS 8,823 in March (the latest available figure) from NIS 8,767 in February.
Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2012
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