After falling for most of the past year, home prices rose for the second successive month, while the Consumer Price Index rose less than expected.
The Home Price Index rose 0.3% in July after rising 0.9% in May-June, the Central Bureau of Statistics reported today. This will be a disappointment to the Ministry of Finance, which has pledged to halt the rise in home prices over the past decade, which has made it difficult for young people to afford their own home. However, the Ministry of Finance will be able to take comfort from the fact that home prices have fallen 0.5% over the past 12 months.
Housing prices in July rose 0.5% in Tel Aviv, 0.4% in Jerusalem, 2.0% in the north, 0.1% in central Israel but fell 0.1% in the south and 0.6% in Haifa.
The Consumer Price Index (CPI) for August rose only 0.1%, below the 0.2-0.3% predicted by economists. This means prices have risen by 1.2% over the past 12 months. Prices of entertainment and culture rose 2.1% in August, home rentals rose 0.2% and housing costs rose 0.4%. Prices of fresh fruit and vegetables fell 2.5% in August, clothing and footwear fell 1.7% and communications fell 1.2%.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2018
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real estate photo: Eyal Izhar