Israel's housing market continues to flourish with 10,200 homes sold in February 2021, up 10% from February 2020, Israel's Chief Economist in the Ministry of Finance reports. With the government's buyers price program being phased out, housing deals on the open market rose 19% in February 2021 compared with February 2020.
But Tel Aviv is bucking the trend with only 455 housing deals in February 2021, down 25% from February 2020. In addition to the high prices in the city, the Chief Economist speculates that during the Covid-19 crisis people are seeking larger and more spacious properties in more outlying areas rather than smaller properties in the city.
With the lower purchase taxes investors are returning to the market with sales up 60% to 2,000 homes in February 2021 compared with February 2020.
Young couples continue to be the strongest component in the market, buying 4,900 homes in February 2021, up 7% from February 2020. Sales in the buyers price program were 823 apartments in February 2021, down 41% from February 2020, although up 32% from January 2021.
People selling apartments and buying larger apartments fell 5% in February 2021 to 3,300 and fell 10% from January 2021.
Published by Globes, Israel business news - en.globes.co.il - on April 25, 2021
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