New home sales indicate that the real estate market has cooled. The Central Bureau of Statistics today reported that 1,014 privately-built new apartments were sold in December 2009, 14.6% fewer than the 1,181 new apartments sold in November. The number of publicly-built new apartments sold rose to 381 from 319 over the same period.
The Central Bureau of Statistics figures are in line with the Ministry of Finance figures published yesterday. The ministry reported a 9% drop in new apartment sales in December, compared with November, mostly due to a drop in purchases by investors.
The Ministry of Finance said there was "a halt in the growth in demand, and possibly even a drop", which it mainly attributed to the Bank of Israel's interest rate hikes, which has driven investors away from the market. The ministry added, "Potential buyers believe that home prices have peaked."
The Central Bureau of Statistics also reported that home demand fell to 2,364 apartments in December from 2,646 in November. The December figure included 1,395 homes sold during the month and 969 privately-built homes under construction and not for sale.
Inventory of new privately-built homes fell 2% to 8,075 apartments in December, the second consecutive monthly decline
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2010
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