The Rise in Second-Hand Apartment Sales: A Closer Look at the Data

by time news

2024-04-17 05:53:00

The CBS data left no room for doubt – there is an increase in the sale of second-hand apartments. On the other hand, these data are based on a comparison between September-November 2023 data compared to December-February, that is, between the period before the war, the reform period and the demonstrations (who remembers?) and the period in which there was a significant relaxation.

The change in second-hand apartments is just as important as new apartment data. In new apartments we often see biased data – there are apartments at a discount, there are contractor specials and financing benefits that make the choice easy. An increase in second-hand apartment data does not yet indicate that people are buying old apartments. On the contrary, there is a greater increase in new apartments. It is estimated that most of the apartments, in a relatively high percentage, were purchased between 1992 and today and not before. It is true that investors buy old apartments, but if you take the average Israeli – he wants an apartment with a MMD and don’t forget that some of these apartments are new – they were purchased two years ago by investors or buyers who strive to improve housing and are selling now, when the apartment is new but called second hand Because of the nature of the deal (not all of them lived, by the way).

So where is the change the most significant and how does it compare to the three months that are not in wartime, i.e. between June and August last year (which supposedly should have better data due to seasonality)? Pay attention to what is happening in the big cities. In Tel Aviv 416 apartments compared to 388 before the war and in Petah Tikva 384 apartments compared to 297 apartments before the war, when similar figures were three months earlier. A significant increase was recorded in Jerusalem, where 753 apartments were sold, while only 485 were sold in the three months between June and August. That is, despite the matter of seasonality in the months of June to August, there is a significant increase in the purchase of apartments in the major cities before the war.


Abnormal data in Or Akiva. Sale of new and second-hand apartments (LMS)

Even in relatively small cities, which attract investors, the situation is not much different. We took Dimona, which recorded a crazy increase of 150% in the sale of apartments before the war. She sold 176 apartments in three months and now 152 apartments. That is, a gap of 24 is apartments – this is not dramatic compared to the record the city held.

Looking at the table, it can be said that the improvement in the city of Haifa is encouraging and in Be’er Sheva it is obvious – investors flocked to the southern region and you can see that even in Ashdod and Ashkelon, hit by the missiles before the war, there is a dramatic increase in second-hand apartments. True, there is also an increase in first-hand apartments, but the increase in second-hand apartments is more significant. Why? Because some of these apartments are not protected.

So what did we do? We went to check, it turns out that here too, a large part of the apartments that were purchased are from 1992 and up. This year, it is mandatory to install air conditioners in apartments, so it is possible to purchase a second-hand apartment at a lower price (unless it was built around 2020 or later, in which case the price is more or less the same as buying a new apartment).

If we were told that the phenomenon of migration between Ashkelon and Ashdod is dramatic, we could explain part of the increase in Ashdod, but from the sales data, we see that Ashkelon is registering a significant increase itself – both in first-hand and second-hand apartments. Moreover, it almost doubled the sales for second-hand apartments.

Comments to the article (0):

Your response has been received and will be published subject to system policy.
Thanks.
for a new comment

Your response was not sent due to a communication problem, please try again.
Return to comment

#city #buy #secondhand #apartments

You may also like

Leave a Comment