At the beginning of 2024, the rate of home purchase sales returned to its pre-October 7 level, and ranged from 6,000 to 7,000 transactions per month, about a third of which were for the purchase of new homes, and the rest for the purchase of pre-owned residences. Despite the relative return to routine, this is not a high pace, and it seems that the market is still affected by the war and the uncertainty regarding the security situation. The interest rate also remains high. After a minor reduction of a quarter of a percentage point in January, at the end of February, the Bank of Israel decided to keep the interest rate at a high of 4.5%, to the dismay of mortgage borrowers.
2023 ended with a record supply of about 68,000 new unsold homes, which should continue to generate a stable price level, and perhaps even lead to a slight decline in prices. Despite this, the most recent home price index published in February indicated a surprising increase of 0.7 percent in home prices, after nearly a year of moderate declines. At this stage, it is difficult to determine whether this is a trend change or a one-time sweep. The March Index, scheduled to be published on the 15th of the month, is expected to clarify whether the market is indeed changing direction and a new period of price increases lies ahead.
The following is a selection of real estate deals that took place in January and February 2024 carried out by English-speaking real estate agents in Israel. The idea is to give our readers a general idea of the residential real estate market, property prices, and activities around the country relating to Israel real estate*.
Jerusalem:
A 3-room apartment, 89 sqm with an 11 sqm balcony, on the third and top floor, located on Se’adya Gaon, in Rehavia, was sold for NIS 4,700,000. A 3-room apartment, 75 sqm, located on the first floor on Alfasi, in Rehavia, sold for NIS 3,378,400. A 2-room apartment, 48 sqm on floor 5 out of 20, located on Mevo HaMatmid in the City Center, was sold for NIS 2,200,000. A 4-room apartment, 93sqm with an 8sqm balcony, located on Beit Ha’arava in Arnona, was sold for NIS 2,500,000 (Re/Max Vision).
Tel Aviv:
A 3-room apartment, 91 sqm, with a 22 sqm balcony, located on the 6th floor out of 7 floors, on David Hamelekh, sold for NIS 7,480,000. A 3-room apartment, 64 sqm, with an 11 sqm balcony, located on the 3rd floor out of 4 floors, on David Hamelekh, sold for NIS 2,990,000. (Daon Group Real Estate).
Modi’in:
A 6-room penthouse, 177 sqm with 2 porches, 44 and 64 sqm, located in a new building in the new Moreshet neighborhood, was sold for NIS 5,000,000. A 6-room semi-attached home, 250 sqm with a 150 sqm garden, located on Reuven Street in the Buchman neighborhood, was sold for NIS 6,125,000 (Schuller Properties).
Netanya:
A 4-room apartment, 165 sqm with a 33 sqm balcony, located on floor 25 out of 32 floors on Natan Yonatan Street, Ir Yamim, sold for NIS 10,500,000. A 5-room apartment, 153 sqm with a 25 sqm balcony, located on Ehud Manor Street, Ir Yamim, sold for NIS 5,00,000 (Maxine Marks Property).
Ramat Beit Shemesh:
A 5-room apartment, 120 sqm with a 14 sqm balcony, located on floor 2 out of 5 floors, on HaRav Elyashiv in RBS Aleph, sold for NIS 3,200,000 (Elite Israel Realty).
Nahariya:
A 4-room apartment, 110 sqm with an 8sqm balcony, located on floor 8 out of 10, on Hashaked Street in the Ein Sara neighborhood, was sold for 1,470, 000 NIS (Remax Nahariya).
Ashdod:
A 5-room mini penthouse, 164 sqm, located on the 8th and top floor on Bialik, sold for NIS 2,450,000. An 8-room villa, 370 sqm, located on Yoel Moshe Solomon, sold for NIS 6,600,000 (Remax Together).
* The offices/agents mentioned represented the buyers, the sellers, or both parties.
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