The Ministry of Finance today published its Red Lights monthly macroeconomic survey, which shows that the cooling of the real estate market continued in April 2012. Young couples are returning to the market, but investors are leaving it. The survey found an improvement in most economic sectors in April, but that foreign trade slowed, and that the debt crisis in Europe worsened.
Home sales were lower in April than in March (Passover fell in April this year), but were unchanged compared with April 2011. 6,200 homes were sold in April, 17% few than in March.
Home sales in Jerusalem rose by 17% in April compared with the corresponding month, and by 7% in the Shfela (inland plains) region, due to increased home purchases in this region by young couples. Young couples bought 47% of the homes in the Shfela in April, 11% more than in April 2011.
Preliminary figures for May indicate a sharp rise in home sales compared both with April and with May 2011.
New home prices continued to fall in April dropping 0.8% compared with March. Prices in the Central region and in Beersheva fell by 0.3%, and prices in Haifa, the Sharon and in the Shfela fell by 1-1.3%.
Home purchases by investors in April fell by 19% compared with March and by 9% compared with the corresponding month. Investors accounted for 22% of home purchases in April, down from 25% in April 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on June 4, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012