The volume of new mortgage loans awarded monthly in Israel has reverted to the level of three years ago, strengthening the indications that the real estate market is at the start of a severe crisis. Bank of Israel figures show that new mortgage loans in May amounted to NIS 6.5 billion, similar to total in the previous few months (except for April, in which there were Passover and independence Day and therefore fewer business days). Meanwhile, transaction numbers in the residential real estate market are the lowest they have been for twenty years.
The total of mortgage loans in May 2023 was similar to the average for the last quarter of 2022, and 46% below the figure for May 2022.
The figures confirm those of the Central Bureau of Statistics and the chief economist at the Ministry of Finance showing a decline of 40% in the number of real estate transactions in the past few months compared with the same months in 2022.
The figures released by the Bank of Israel today do not include a breakdown by sector, which will be published towards the end of the month. Figures from previous months show that those still in the market are chiefly buyers of apartments costing NIS 3 million or more, and winners of Buyer Price subsidized housing lotteries, who don’t want to miss out on the discounts to which they are entitled.
Published by Globes, Israel business news - en.globes.co.il - on June 11, 2023.
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