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Rise in home prices starts to slow down


By Adi Ben-Israel

GLOBES

Home prices are rising at a slower rate, according to data released Sunday by the Government Assessor. Home prices rose just 0.3 percent in the third quarter in comparison with the second quarter.

In six cities there were even falls in prices, including in Tel Aviv, where the price of a four-room apartment fell 2% to NIS 2.7 million. 

The government Assessor’s survey examine prices on four-room apartments only, since these are the properties in highest demand in the Israeli housing market. “In the surveyed period, the trend of moderate price rises that has characterized the past year slowed to the point of halting altogether,” the Government Assessor’s report said. “At the end of March, the government’s decision on measures to bring down housing prices was published, among them the “target price” program and the plan for 0% VAT.

“In the surveyed period, these programs had not yet been implemented. Moreover, Operation Protective Edge took place in this period. These two factors led to a sharp fall in the number of transactions during the summer months, which was partly corrected during September, when there was rise in the number of transactions in comparison with previous months”

In Haifa, the price of four-room apartment fell 1% in the third quarter to NIS 1,277,000. In comparison with the third quarter of 2013, a rise of 3% was recorded. For the Jerusalem, there was a third-quarter rise of 4% to NIS 1,936,000 and a 12- month rise of 10%. In Modi’in, prices remained stable in the third quarter at 1,627,000 up 5% over the third quarter of 2013. In Herzliya, prices fell 2% in the third quarter to NIS 1,990,000 up 3% compared with 2013. In Netanay, prices rose 2% in the third quarter, up 4% compared with 2013.

According to Ministry of Construction and Housing data, the stock of unsold new housing units rose to 26,920 in the third quarter.