Prices for new apartments continued to rise in the first quarter of 2010, continuing the trend of the preceding quarter, with the rise easing only slightly in March. The fact that Passover fell in late March this year was the probable reason, due to the drop in available sale days. New home prices rose by 4.5% in the first quarter.
A new study compiled by "Globes", based on data collected by realtor Eldar Projects Marketing Ltd., showe no decline in new home purchases in the first quarter compared with the preceding quarter. The housing market is still demand driven and sellers have the upper hand, at least in cities covered by Eldar.
The Central Bureau of Statistics also reports that 1,652 new homes were sold in March, up from 1,546 sold in February.
A breakdown of new home buyers in the first quarter found that the proportion of buyers seeking bigger apartments increased to 64% of all buyers in March, while the proportion of young couples (first-time buyers) fell to 13% of all buyers. Young couples lack the funds to buy and also lack an apartment to sell to help finance the purchase of a new one.
The average time between a first visit and the signing of a contract to buy a new home in the first quarter was 22 days in Herzliya, 23 days in Rishon LeZion, and 25 days in Petah Tikva. All new apartments sold in Herzliya in March were to people seeking larger apartments, compared with 73% in Rishon LeZion and Kfar Saba, and 50% in Ramat Gan.
Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2010
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