Home prices rose 1.6% in the second quarter, the Government Assessor reports.
The slowdown in the sale of homes continued alongside rising apartment prices in the second quarter of 2014, Government Assessor Tal Alderotti reports. The price of an average 4-room apartment in Israel's six largest cities rose 1.6% in the second quarter of 2014 and 6% in the 12 months ending in June.
In the second quarter average home prices rose most sharply in Ramle (7%), followed by Eilat (6%), Jerusalem and Modiin (4% each). Prices only rose by 1% in Tel Aviv in the second quarter but 9% over the 12 months ending in the second quarter. Prices fell by 1% in Holon and by 4% in Beersheva in the second quarter. There was no change in prices in Ashkelon, Herzliya and Kfar Saba in the second quarter.
The Government Assessor notes that there was a major slowdown in home sales in the second quarter, mainly of new homes because of the government's plan to charge 0% VAT to new homebuyers. However, he noted that the low number of deals had not stemmed rising prices.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2014
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