Home sales in Israel slump

Sharp fall in apartment purchases credit: Tali Bogdansky
Sharp fall in apartment purchases credit: Tali Bogdansky

Only 46,000 homes were sold in the second half of 2022, 43% less than in the second half of 2021.

At first glance 2022 does not seem like such a bad year for home sales in Israel. 110,000 homes were sold, according to the Ministry of Finance chief economist, 11% higher than the average over the past 20 years. Last year's figure was down 27% from 2021 but that was an exceptional and record year by a long way, which in unlikely to recur for a long time.

But on a closer examination it can be seen that while 64,000 homes were sold in the first half of the year, only 46,000 homes were sold in the second half of 2022, 43% less than the second half of 2021, 27% less than the second half of 2020 and 18% less than the second half of 2019.

Figures from the Central Bureau of Statistics showed a similar trend in new home sales in 2022. The number of new apartments sold in the second half of 2022 is not only lower by almost 50% than new homes sold in the second half of 2021, but also 35% blow the second half of 2020 and 25% down from the second half of 2019. The new apartments market has gone back five years, but has been left with 53,000 unsold apartments - a much larger stock of unsold apartments than back then.

In 2022 the biggest amount of new homes sold was in Jerusalem - 2,195 apartments, down 11% from 2021. 2,011 new apartments were sold in Ashkelon, down 50.9% from 2021, and 1,914 new apartments were sold in Tel Aviv-Yafo, down 52% from 2021. 1,797 new apartments were sold in Netanya, down 2.3% from 2021, and 1,672 new apartments were sold in Rishon Lezion, down 39.5% from 2021.

Published by Globes, Israel business news - en.globes.co.il - on February 14, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Sharp fall in apartment purchases credit: Tali Bogdansky
Sharp fall in apartment purchases credit: Tali Bogdansky
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