Home Sales Drop 16% in July— Ofakim Leads New Homes Sales

In July, 8,140 homes were sold in Israel, according to data published by the Central Bureau of Statistics (CBS). This represents a 33.7% increase compared to June, but a 15.9% decline compared to the same month last year. Of the total homes sold, 2,750 were new apartments, 27.8% of them government-subsidized. Ofakim led the country with 535 new home sales, while Jerusalem topped the second-hand market with 926 transactions. Meanwhile, the stock of unsold new apartments in Israel hit a record 82,530 units.

By Doron Breitman, Nadlan Center

A total of 8,140 homes were sold in July. This marks a 33.7% jump from the previous month but a 15.9% drop compared to July 2024. Out of these, 2,750 were new homes, with 27.8% apartments subsidized by the government — up 34.1% from June, but down 31.2% year-on-year. The second-hand market accounted for 5,390 transactions, up 33.5% from the previous month but down 5.1% from last year.

Between May and July 2025, 21,640 homes were sold nationwide, a 6% decrease compared to February–April 2025, and 19.6% lower than the same period last year. Notably, the June military operation “Am K’Lavi” likely influenced sales volumes.

Of these three-month sales, around 7,430 were new homes, down 15.4% compared to the previous three months. Second-hand homes dominated with 14,210 transactions (65.5% of all deals), showing only a slight quarterly decrease of 0.1%, though still 6.8% lower than last year.

The Central District led the market, accounting for 24.4% of sales, with 27.9% of new apartment sales (2,072 units) and 22.5% of second-hand transactions (3,200 units). The Southern District followed with 22.8% of all sales, including 27.5% of new apartments (2,039 units) and 20.4% of second-hand sales (2,898 units). The Tel Aviv District recorded 15.5% of all sales, with 17.25% of new apartments (1,282) and 14.6% of second-hand transactions (2,084).

Compared to the previous quarter, new apartment sales declined across all districts, with the steepest drops in Haifa (32.2%), Jerusalem (30%), and Tel Aviv (20%). Second-hand sales also fell in Tel Aviv (7.6%), Central District (4.2%), and Haifa (10.4%), while increasing in Jerusalem (5.3%), the North (7.5%), and the South (0.7%).

Ofakim Leads New Homes, Jerusalem Leads Resales

Breaking down sales by city: Ofakim led new apartment sales with 535 units sold from May to July 2025, a 7.6% increase over the prior quarter. It was followed by Tel Aviv-Yafo with 516 sales (down 9.5%), Jerusalem with 356 (down 33.3%), Lod with 351 (down 28.9%), and Netivot with 315 (down 14.2%).

In the second-hand market, Jerusalem came first with 926 transactions (up 1.5%), followed by Haifa (892, down 0.2%), Be’er Sheva (722, down 7.8%), Tel Aviv (655, down 3.4%), and Ashkelon (454, up 9.1%).

Unsold inventory hits record levels

The inventory of unsold new apartments reached 82,530 units in July 2025, a new high. Based on the current sales pace, this represents 31.1 months of supply. Compared to June, inventory rose 1.3%, and compared to last year it jumped 19.8%.

Tel Aviv District holds the largest share with 26,310 units (31.9%), followed by the Central District with 19,480 units (23.6%). Among large cities (over 100,000 residents), Tel Aviv-Yafo leads with 10,213 unsold units, followed by Jerusalem (8,027), Bat Yam (4,270), Netanya (3,582), and Ramat Gan (3,518).

Among smaller cities, the highest unsold inventory is found in Be’er Yaakov (2,200), Lod (1,990), Kiryat Ono (1,450), Ra’anana (1,360), Ofakim (1,200), Kiryat Bialik (1,200), Or Yehuda (1,110), Netivot (1,050), and Tiberias (1,010).