The Central Bureau of Statistics survey of tenant owned homes showed that home prices rose in February. The Home Prices Index rose by 0.4% rise in February, and the Home Rent Index rose by 0.3%. The rises continue the trend since December 2008, the last month that home prices fell.
Recently published figures for the fourth quarter of 2010 show that nominal home prices rose 43% in 2008-10. Home prices have risen by 60.2% since the current rise began in 2007.
A few days ago, the Ministry of Finance's Red Lights Survey reported that home prices fell by 0.6% in January compared with December.
However, the Central Bureau of Statistics says that the average home price was NIS 1.09 million in the fourth quarter of 2010, 3.4% higher than the NIS 1.05 million in the preceding quarter, and 16% higher than the NIS 937,600 in the corresponding quarter of 2009.
Average monthly rent was NIS 3,039 in the fourth quarter, almost 2% higher than the NIS 2,982 in the preceding quarter, and 7.7% higher than in the corresponding quarter.
The rise in home prices is increasing the number of monthly salaries needed to buy a home. The Ministry of Housing and Construction reports that 129 average salaries were needed to buy a home in 2010, up from 119 salaries in 2009, and 105 salaries in 2007-08.
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2011
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