The number of home purchases fell 25% in April 2014 compared with the previous month, according to the Ministry of Finance's "Red Lights" monthly report. Part of the drop was due to the Passover holiday occurring in April. In April 2013 the level of home sales was similar. However, preliminary figures for May show the number of home buying deals being the lowest since May 2003.
The biggest fall in home purchasing deals in April compared with March was a 30% drop from investors. The percentage of deals by investors fell 2% in April to less than 24%, for the first time since October 2013. In contrast to the national trend, the percentage of investors in home buying deals has risen in Tel Aviv over the past few months.
Over 50% of homes sold in Tel Aviv are "additional homes", the highest rate since May 2010.
At the same time the number of homes purchased by young couples fell 21% in April compared with March, the smallest proportional fall of any segment.
The Ministry of Finance also published figures for the first quarter of 2014. During that period 26,000 homes were sold, a 21% decrease on the record number of sales in the final quarter of 2013.
The fall in first quarter deals was led by young couples with a drop of 26% compared with the previous quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2014
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