The Market is Boiling: Record Transactions and Highest-Ever Average Mortgage

According to data from the Bank of Israel, December 2024 saw a 9.4% increase in the average mortgage size compared to the previous year, which stood at NIS 1.09 million. A record number of transactions for apartment purchases (over 12,500) and a 58% jump in investment property transactions were also recorded.

By Doron Breutman, Nadlan Center

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The average mortgage in December 2024 stood at NIS 1.088 million — an all-time high — according to data published today (Wednesday) by the Bank of Israel. This represents a 7.9% increase compared to the previous month (November) and a 9.4% increase compared to the same period last year (December 2022). Excluding mortgages for Discounted Apartments, the average mortgage is NIS 1.09 million, while the average mortgage for discounted apartments stands at NIS 1.02 million, a 4.8% increase compared to the previous month.

Last December, and against the backdrop of the VAT increase, a record volume of mortgages was recorded, totaling NIS 13.8 billion during the month. This represents a record number of transactions carried out — 12,700, 4,800 more than the previous month (a 61% increase in transactions). The increase in transactions also characterizes investors, who completed about 460 more transactions than the last month, representing a 58% increase in the number of transactions. Similarly, the number of transactions was also recorded for “Discounted Apartments,” which rose by 333, an 82% increase in the number of transactions.

Additionally, the volume of high-risk mortgages, with a financing rate of 60%-75% of the property, remains high and, as of December, constitutes 44% of all mortgages taken during the month. This is an increase of 1.7 percentage points compared to the same period last year. On the other hand, financing rates of 45%-60% of the property constitute 29.5% of all mortgages taken during the month. This is a one percentage point decrease compared to the same period last year.

Meanwhile, the total volume of public debt to banks for mortgages continues to grow and stands at NIS 594.78 billion, with 1.069 million active loans. The volume of debt to banks increased by 7.7% compared to last year.

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The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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