Home sales down 32%

housing
housing

The 0% VAT plan on new homes for first-time buyers continues to influence the market.

The stalled 0% VAT plan on new homes for first-time homebuyers continued to influence the number of real estate deals in July 2014, the Ministry of Finance's latest "Red Lights" monthly survey has found.

According to the Ministry of Finance there were 8,175 homes sold in July, virtually unchanged from the preceding month but 27% down on July 2013 when 11,200 homes were sold.

The Ministry of Finance also reported that the number of deals was in effect lower because the data also includes public housing that was sold by the government to those with rights after the suspension was lifted on the Public Housing Law. In July 480 such homes were sold. If this number is taken into account then there were only 7,695 deals in July, 32% less than July 2013.

The Ministry of Finance adds that the sharp fall in July continues the trend that began in April when the 0% VAT plan was first announced. Preliminary data about August indicates that the downward trend continues, mainly in new apartments. The downward trend in July and August was also influenced by Operation Protective Edge.

Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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