Real estate deals down 10% in June

housing

The Ministry of Finance chief economist says that volume of deals in June was one of the lowest for that month in the past decade.

8,500 housing units were purchased in Israel in June, including 530 under the Buyer Fixed Price Plan. The number was 10% fewer than in June 2017.

A real estate market survey published today by the Ministry of Finance chief economist stated that while the volume of deals had increased in May, it had fallen in June to one of the lowest levels for this month in the past decade. Sales of new housing units in June totaled 2,300. The aggregate number of new homes sold in January-June was 9% fewer, but this decrease was partially offset by the number of apartments sold in the Buyer Fixed Price Plan framework, which was twice as many as in the corresponding period last year. Investors bought only 1,100 housing units in Israel. In Tel Aviv, only of out of every four purchasers was an investor.

The Ministry of Finance said that this was a historic low for purchasers of housing units in the Tel Aviv market by investors, who have accounted for 40% of buyers in recent years. As a result of the absence of purchasers by investors, the stock of housing units held by investors dwindled by 700 in June alone, bring the decrease in housing units held by investors since January 2016 to 12,000.

The chief economist said that the low point in purchasers by investors was having a particularly strong effect on contractors in the Tel Aviv area, who have customarily relied on a higher proportion of investors among housing unit purchasers.

Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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