Netanya has topped the table in new apartments sold in Israel between March and May, the Central Bureau of Statistics reports, while Tel Aviv has slipped down to fourth place. The Central Bureau of Statistics also found that in the first five months of the year, new homes sales fell 10% from the corresponding period of 2021.
Between March and May 2022, 664 new homes were sold in Netanya, 644 new homes in Ashkelon, 577 new homes in Ramat Gan, 550 new homes in Tel Aviv, and 506 new homes in Jerusalem. In the previous report for February to April, Tel Aviv was in top spot followed by Rishon Lezion, Beit Shemesh, Ramat Gan, Beersheva, and Netanya.
The major change in the two reports stems from the different methodology by which the Central Bureau of Statistics measures the new home sales. Instead of basing the data on surveys, it is now based on administrative files such as building permits and deals reported to the Income Tax Authority. The estimation is that the dramatic change in the listing of cities with most new homes sold is due to the change in methodology.
Data from the new methodology indicates that 19,800 new homes were sold in the first five months of the year, down 10% from the corresponding period of last year. The Central Bureau of Statistics found that the fall in the sale of new homes began in August 2021, with an average fall of 3.3% per month, while between April 2020 and July 2021, there was an average rise of 2.3% per month.
The Israel Builders Association insists that the fall in the purchases of new homes stems from the fall in supply. But while this may be true in certain cities, on a national scale the inventory of new homes for sale is 46,000, the same number of between 45,000 and 47,000 throughout the past year.
More likely, the fall in the sale of new homes that began towards the final quarter of 2021 is due to the substantial rise in the building inputs index, which makes the purchase of new homes risky and uncertainty for buyers.
Published by Globes, Israel business news - en.globes.co.il - on July 14, 2022.
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