10,700 homes were sold in December 2012, equaling the record set in June 2009, 11% more than in the preceding month, and 44% more than in December 2012, the Ministry of Finance reported today.
Home sales totaled 102,000 in 2012, 18% more than in 2011, and reversing the 18% drop in homes sales in 2011 compared with 2010.
Investors bought 22.3% of all homes in December, down from 23.8% in October and 22.6% in November. The proportion of investors in home sales has been falling in high demand areas, except for Jerusalem, since the Bank of Israel's new mortgage restrictions, which came into effect in November, capped the loan-to-value (LTV) ratio for investors at 50%.
Home purchases by young couples fell by 1.4% in December from November, after rising 29% in November over October. Home purchases by young couples in the Coastal Plain fell by 33% in December from November, after rising 46% in November over October. Excluding these purchases in the Coastal Plain, home purchases by young couples were 6% higher in December than in November and 32% higher than in December 2011.
The Ministry of Finance said that preliminary data for January 2013 indicate a sharp drop in home sales, compared with December, but that the proportion of investors was unchanged.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2013
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