The Central Bureau of Statistics publishes the data on the state of new apartment sales (first hand) across the country in 2022. In Ashdod, a decrease of approximately 14% in total sales was recorded in the last year. Will it lead to a decrease in housing prices?
The data of the Central Bureau of Statistics for 2022 indicate a decrease of about 14% in the sale of new apartments in Ashdod. The decrease is due to several reasons: the sharp increase in housing prices, a sharp decrease in the supply of new apartments in the city, the changes in interest rates in the economy.
According to the CBS data, in 2022 1,026 new apartments were sold in the city compared to 1,190 in 2021 – a decrease of 13.8%. Neighboring Ashkelon, which was an alternative for many young couples from the city, saw a decrease of almost 51% in the sale of new apartments, but it is still among the leaders in Israel In the sale of new apartments, the prices of new apartments in Ashkelon have increased in the last year, in addition to the increase in interest rates – leading to a halt in sales.
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At the national level, according to the CBS, this is a decrease of about 30% in the sale of new apartments all over the country.
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The expectation is that as the demand for new apartments decreases, the pressure on the contractors will increase and they will be forced to lower prices, and certainly will not be able to continue raising them.