Apartment prices in Israel's large cities began to fall during the third quarter of 2008. Cities where prices were already lower, fell further, according to a Geocartography Ltd. analysis of real estate prices in January-September. Nationwide, however, housing prices rose.
Geocartography found that the average price for an apartment in Tel Aviv was NIS 1.48 million in the third quarter 7.6% less than in the second quarter. The average price for an apartment in Jerusalem fell by 3.3% over the same period to NIS 1.23 million. After a slight rise in housing prices in Haifa during the second quarter, the average price fell by 6% to NIS 504,000 in the third quarter.
Apartment prices fell during the third quarter in Herzliya, Ra'anana, and Hod Hasharon, but rose in Kfar Saba, Petah Tikva, Rehovot, and Modi'in.
Geocartography CEO Dr. Rina Degani attributed much of the sharp drop in housing prices in Tel Aviv during the third quarter to the sharp rise in prices during the preceding quarter. The average apartment price in Tel Aviv in the third quarter was still 43% higher than the 2006 average; the average apartment price in Jerusalem was 31% higher; but the average apartment price in Haifa was 11.5% lower.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2008
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