Updated: Jan 6
According to a recent survey conducted by land appraisers, housing prices in Israel remailed unchanged in 2019. The findings contradict earlier data from the Central Bureau of Statistics, which reported a 2.6% increase in housing. The recent results from the Wagner-Kruvi firm concluded that when looking at individual cities, there were increases and decreases, but on a national level, prices remained steady.
The study analyzed large, medium, and small cities in various parts of the country. Price stagnation, it seems, can be attributed in part to political instability. Investors fear that once a new government is formed and budget deficit addressed, the housing market will face repercussions. Furthermore, Israeli investors frequently opted to spend their money outside Israel to avoid paying hefty taxes. The security situation and recent attacks didn’t play a role.
More Homes Purchased
More people bought homes in 2019 than in the last few years (see diagram below), but the types of people buying were significantly different. Investors acquired fewer homes this year, and young couples purchased at higher frequencies. According to a report released by Bank Leumi, the rise in residential real estate purchases is, in part, thanks to the government’s “Buyer’s Fixed Plan.”
Predictions for 2020
Some analysts predict an upward trend in housing prices in 2020, citing the rise in housing purchases among the factors. Midroog, the popular rating agency, claims that low mortgage interest rates increase sales, and government policy didn’t cause prices to go down. According to their analysis, this reality against the backdrop of increased real estate activity will gain momentum and cause prices to go up.