"The real estate market continues to cool off in May, and preliminary data for June points to a continuing sharp fall in the volume of transactions to the lowest level since June 2004," the Ministry of Finance wrote in opening its "Red Lights" monthly survey on real estate.
According to the survey, there were 8,200 transactions in May 2011, 14% down on May 2010. In all matters relating to apartment prices, the Ministry of Finance continues to insist that prices are falling despite the figures published by the Central Bureau of Statistics that contradict this claim. The minutes of the Bank of Israel's meeting about the interest rate, which was published today referred to a 15.3% rise in home prices in the months prior to May 2011.
The Ministry of Finance survey found that the price of new apartments fell 0.5% in May with the sharpest fall in the Central and Hasharon region where prices fell 1.8%. The survey also found that as in previous months, apartment prices rose in the Haifa region and were stable in Beersheva.
The market share of apartments bought for investment fell to 23% in May 2011 from 31.1% in May 2010.
Published by Globes, Israel business news - www.globes-online.com - on July 11, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011