Is the trend in Israel's housing prices about to shift? According to the Globes, new figures for new and second hand housing real estate transactions in the month of October published by the Ministry of Finance seem to suggest so. The figures reported look unusual especially in the month when the Sukkot Festival had taken place. Moreover, those new figure offer a peek into the state the housing real estate market was in for the month of November.
"Initial figures for November indicate a sharp rise in the number of deals. This is particularly prominent in the secondhand housing sector," the publication quotes what the review has reported. "The proportion of increase in secondhand housing purchases is significantly greater than for new housing, which can be explained, among other things, by sales of housing from a waiting housing inventory and/or stronger housing sales by investors."
Based on the figures that the review has reported the shift in the price trend is the opposite of what has been observed in the past. In recent months, investors were either buying fewer apartments or cashing out from real estate. Whether this was because investors are expecting prices to fall or not, the effect is an increase in housing supply.
So what figures does the said review project? According to the Globes, there were more deals in October. For example 7,700 housing units were sold in that month. According to the review by the Ministry of Finance chief economist, it is 18% higher than September lows. However it is assumed that it might be due to the High Holy days in September.
Moreover, it should be noted that October deals are 14% better than October of last year. Then early figures for the month of November reflect a sharp increase in secondhand housing deals. Will this trend continue through the end of December?
