Last July, only about 2,800 apartments were sold – the lowest monthly amount in the last three years. During the months of May-July, about 10,520 new apartments were sold, which make up about 69.7% of the requested quantity. About a quarter of all the new apartments sold, in the cities of: Netanya, Tel Aviv-Yafo, Jerusalem, Ashkelon and Lod. In addition, 22.6% of the apartments were sold with government subsidies.
Also, there are about 4,580 new apartments that are not for sale, which make up 30.3% of the requested amount, 73.7% of which are being built as part of self-construction and “build your home”, of which 40.6% are in the North District. 14% of the apartments are built for rental purposes, more than half of them in Haifa and the North districts.
The requested amount of apartments last July marks a decrease, as according to the trend data there was a decrease of 5.3% compared to the previous month. The number of apartments not for sale was about 1,540. According to the trend data, there was a decrease of 2.8% compared to the previous month.
In total, in the three months between May and July, about 10,520 new apartments were sold, a decrease of 10.4% compared to the previous quarter. 22.6% of the apartments were sold with government subsidies. Examining the trend data shows that from August 2021 there was a decrease at a rate of 3.9% per month, after an increase at a rate of 2.3% per month was observed from April 2020 to July 2021.
In addition, the number of new apartments not for sale whose construction began in the three months of May-July 2022 is about 4,580 apartments, a decrease of 8.5% compared to the previous three months. After deducting seasonality, a decrease of 2.6% compared to the previous three months is observed in that period, an examination of the trend data shows that starting from May 2022 a decrease of 2.0% was recorded, after an increase of 4.5% per month was observed from July 2021. In July 2022, the number of apartments not for sale was about 1,540. According to the trend data, there was a decrease of 2.8% compared to the previous month.
The Bank of Israel has raised the interest rate over the past few months, which may make it unviable for apartment buyers. The governor of the Bank of Israel, Prof. Amir Yaron, raised the interest rate in the economy by 0.75%, to a level of 2%. The relatively sharp increase in the interest rate shows the Bank of Israel’s surprise at the rate of inflation in the economy, which – after the publication of the July index – stands at 5.2%, above the target set by the central bank (1%-3%).