Home prices slightly higher in Q3

Government Assessor: Home prices were 1% higher in the third quarter than in the preceding quarter and 3% higher than in the corresponding quarter.

Home prices were 1% in the third quarter of 2012 compared with the preceding quarter and were 3% higher than in the corresponding quarter of 2011, says Chief Government Assessor Tal Alderoti.

The Government Assessor's survey examines prices of four-room apartments in 16 towns and cities nationwide. It found that the average price of a four-room apartment rose in the third quarter in 10 of the 16 markets examined, with the largest rise in Herzliya. The rise in prices is probably a correction from the survey for the second quarter, in which home prices in Herzliya fell 3% compared with the first quarter.

The average price of a four-room apartment in Tel Aviv and Beersheva was 3% higher in the third quarter than in the second quarter, after rising 6% and 2%, respectively in the second quarter compared with the first quarter. Third quarter prices were 6% higher in Tel Aviv and 5% higher in Beersheva than in the corresponding quarter. The average price of a four-room apartment in Tel Aviv was NIS 2.52 million in the third quarter, compared with NIS 2.44 million in the preceding quarter, and it rose to NIS 765,000 in Beersheva from NIS 740,000.

The average price of a four-room apartment in Jerusalem was 2% lower in the third quarter compared with the preceding quarter, but 1% higher than in the corresponding quarter. The average price of a four-room apartment in Modiin was 1% lower in the third quarter compared with the preceding quarter, but 3% higher than in the corresponding quarter.

"The current survey, like the surveys for the preceding quarters, indicates stagnation in home prices," said Alderoti. "I believe that the reason for the lack of change in home prices is that the public has realized that there will be no big surprises. It also realizes that the supply side has to be dealt with, and until then, prices will remain as they are."

Alderoti says that two events since the period survey will affect home prices: the new restrictions on mortgages announced by the Bank of Israel and the early elections. "The echoes from the social protest of the summer of 2011 have faded. They affected home prices in previous quarters, but not the quarter reviewed. However, the global economic uncertainty and instability, especially in Europe, along with the measures announced and taken by the Bank of Israel and the Israeli government are affecting the real estate market in general and the housing market in particular, and have affected conduct in the past year."

Published by Globes [online], Israel business news - www.globes-online.com - on November 18, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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