Contractors' discounts appear to have drawn Israelis back to the real estate market. New home sales in November 2011 were 44% above the number of sales in October, although they were down 28% compared with November 2010, the Central Bureau of Statistics reported yesterday.
The Sukkot holiday was in October this year, reducing the number of business days during the month. The 1,420 new homes sold in November were also 7% above the number sold in September, before the Jewish New Year's holiday. It seems that, after the summer's social protest and the holidays, home sales are back to their levels of June.
New home sales in Jerusalem more than doubled to 244 apartments in November from 97 apartments in October. The increase in sales in the Southern District was about the same. New home sales rose 40% in Central District to 640 apartments in November.
Housing demand, which includes homes sold and homes not for sale (build-your-own-home projects, buyers groups, etc.), was 4% higher in November than in October.
Association of Contractors and Builders in Israel president Nissim Bublil said, "The figures confirm contractors' reports that homebuyers are coming off the fence." He added, "The need for homes exists, and demand cannot be halted by artificial means, especially when home prices are rising."
Housing inventory soars
The Central Bureau of Statistics also reports that, despite the increase in sales, the inventory of new homes continued to grow, reaching 19,292 homes at the end of November from 19,000 at the end of October, and 29% more than in the corresponding month of last year. 42% of the housing inventory is in the Central District, 20% is in the Southern District, 13% is in the Tel Aviv District, 11% is in the Jerusalem District, 7% is in the Haifa District, and 5% is in the Northern District.
November's housing inventory is up 80% in Southern District compared with November 2010; it is 77% higher in the Haifa District, 32% higher in the Central District, 12% higher in the Northern District, 9% higher in the Jerusalem District, and 5% higher in the Tel Aviv District. The inventory is sufficient for 16%, on the basis of the average monthly sales in September-November.
The Mishkan Hapoalim Mortgage Bank Homebuyers Index rose 1.6% in November, indicating that the condition of homebuyers improved during the month, compared with October. Bank Hapoalim attributes the improvement to the drop in home prices, mortgage rates, and in the unemployment rate.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2011
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