Home prices are rising at a slower rate. Data released today by the Government Assessor show that home prices rose by just 0.3% in the third quarter this year in comparison with the second quarter. In six cities there were even falls in prices, including in Tel Aviv, where the price of a four-room apartment fell by 2% to NIS 2.7 million.
The Government Assessor's surveys examine prices on four-room apartments only, since these are the properties in highest demand in the Israeli housing market.
"In the surveyed period, the trend of moderate price rises that has characterized the past year slowed to the point of halting altogether," the Government Assessor's report says. "At the end of March, the government's decision on measures to bring down housing prices was published, among them the 'target price' program and the plan for 0% VAT. In the surveyed period, these programs had not yet been implemented. Moreover, Operation Protective Edge took place in this period. These two factors led to a sharp fall in the number of transactions during the summer months, which was partly corrected during September, when there was a rise in the number of transactions in comparison with previous months."
In Haifa, the price of a four-room apartment fell 1% in the third quarter to NIS 1,277,000. In comparison with the third quarter of 2013, a rise of 3% was recorded. For the Jerusalem, the figures are a third quarter rise of 4% to NIS 1,936,000, and a twelve-month rise of 10%; in Modi'in prices remained stable in the third quarter at 1,627,000, up 5% over the third quarter of 2013; in Herzliya, prices fell 2% in the third quarter of 2014 to NIS 1,990,000, up 3% over 2013; and in Netanya, prices rose 2% in the third quarter of 2014, up 4% over 2013.
According to Ministry of Housing and Construction data, the stock of unsold new housing units rose to 26,920 in the third quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2014
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