It takes 185 monthly salaries to buy a five-room apartment in Israel, according to figures released today by the Ministry of Construction and Housing. The market survey for the third quarter finds that 136 average monthly salaries are required to buy an average apartment. The figure for the average price of an apartment in Israel used in the calculation is NIS 1.25 million, while the average salary is NIS 9,217 a month. This compares with 132 salaries last year, and 103 salaries in 2008.
For a household with two working spouses bringing home NIS 13,829 a month between them (the average net income per household in 2012), 85 net monthly salaries are required to buy an apartment. (The income figure covers all sources: work, earnings on savings, and welfare and support payments, after deducting income tax, National Insurance contributions, and health tax.)
According to the survey, home prices continued to rise in the third quarter of 2013. The NIS 1.25 million average price of an apartment represents a rise of 5.3% in comparison with the third quarter of 2012, and a rise of 2.3% in comparison with the second quarter of 2013. The highest prices are in the Tel Aviv district, where the average apartment price is NIS 1.79 million, 43% above the national average. Lowest prices are in the north of the country, with an average price of NIS 748,000, 39% below the national average. All districts experienced rises in prices in the third quarter, apart from Jerusalem. The steepest rises were in Haifa and in the south.
The median price of a home in the third quarter was NIS 1.18 million, 11% higher than in the corresponding quarter.
The real rate of increase in home prices, in the long-term trend since 1967, is 2.1% annually. Despite the sharp real increase since 2008 (50%), current prices are not far from the long term trend line. In the period January-August 2013, price levels were just 2.4% above this line.
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2013
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