New home prices fall by 0.9% in June
Posted on 01. Aug, 2010 by buyitinisrael in Buying On Paper, Israel Real Estate
The trend of a decline in prices of new homes reported from the beginning of the year continued in June, according to an economic report by Israel’s Finance Ministry. The median price of new homes dropped by 0.9 percent in June. A geographical comparison found that the decline encompassed most areas around the country apart from Haifa and Rehovot. The area which saw a sharp fall in Israel real estate prices in June was Beersheva.
The number of home acquisitions continued to rise in June albeit at a much slower pace than in May. Home purchases increased by a mere 8 percent during the month of June after surging by 35 percent in the previous month.On a year-on-year comparison, the number of home buys fell by 6 percent in June this year from June last year, while the number of new home purchases plunged by more than 20 percent during the same period.
Furthermore, the weight of apartments which are bought for investment purposes continued to drop in June falling to the lowest level since February 2009. Area by area analysis showed a larger decline of purchases of investment apartments in the the center and Beersheva. At the same time, there was a sharp increase in the sale of apartments by investors in the area of Beersheva, where close to 50 percent of investors bought apartments over the past two years.
The report also found that the salary level of homebuyers for residential housing was lower in June than in May, apart from peripheral areas in the North such as the Galilee, where salary levels rose. Against this, buyers of Israel real estate for investment were characterized by a significantly higher salary level in June than in previous months. The Ministry of Finance tried to explain these findings by suggesting that they point to tighter terms by Israel mortgage banks regarding customers defined as carrying higher credit risk.
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2 Responses to “New home prices fall by 0.9% in June”
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David chaikin
13. Aug, 2010
You have two articles that contradict each other. Please explain which statement is true???
1.”‘New home prices fall by 0.9% in June”
The trend of a decline in prices of new homes reported from the beginning of the year continued in June, according to an economic report by Israel’s Finance Ministry. The median price of new homes dropped by 0.9 percent in June.
The above statement contradicts this one:-
2.”‘Israel records fifth highest rise in property prices globally”
Home prices around the world are changing direction led by Israel which was ranked in fifth place in the list of countries with the sharpest increase in real estate prices in the first quarter of this year, according to the Global Property Guide survey.
buyitinisrael
01. Sep, 2010
David, the two articles don’t contradict each other. They cannot be compared since they are based on different data: Article # 1. is based on a local survey and refers to new homes in Israel.
Article # 2 is based upon a global survey comparing Israel’s market to the global property market. As suggested it includes everything from new to second-hand homes and shows that in comparison to other global markets where prices have fallen dramatically, prices in Israel have shown the fifth sharpest increase. I hope this helps.