Treasury: Housing market slowdown worsens

Kiryat Ono apartments

Excluding the buyer fixed price plan, the number of homes sold in Israel fell 14% in September, the Finance Ministry reports.

"The slowdown in the real estate market continued, and even worsened in September," the Ministry of Finance chief economist wrote in his review published today. According to his figures, 7,300 homes were sold in September 2017, including 400 under the buyer fixed price plan.

The review says that excluding the buyer fixed priced plan, the number of homes sold at market prices was 14% fewer than in August, and 26% fewer than in September 2016.

There were fewer working days in September this year because of the Rosh Hashanah holiday, while Rosh Hashanah fell in October in 2016. Some of the decline in sales may be due to the smaller number of working days. At the same time, on a quarterly basis, the Ministry of Finance writes that September ended one of the weakest months in the real estate market since the waiting period for the 0% value added tax plan in 2014, continuing the downtrend in the sector in recent quarters.

The current review indicates again that the number of deals fell in all segments of the market. The number of those buying a first home dropped by 18% compared with the preceding month and 23% compared with the corresponding month last year. The number of those buying a better home than their current one also dropped, falling 10% compared with August and 25% compared with September 2016. Investors are also buying fewer homes.

Published by Globes [online], Israel Business News - - on November 12, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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