Bank of Israel: Housing Prices Up 8% in Last Year

Report shows number of average monthly salaries needed to buy an average home in Israel reaches record high of 147.

The Bank of Israel "Monetary Policy Report - July-December 2013" published on Sunday indicates that housing prices rose 8% in the last year, ending in October 2013. The report also shows that the number of average monthly salaries needed to buy an average home in Israel reached a record high of 147 in September, up 52% from 2008, when it was 96 salaries.

The Central Bureau of Statistics specified that the median salary in 2012 was 6,541 shekels (1,870 dollars), 71% of the average salary that year. The median home price in 2013 was 1.4 million shekel (about $400,000).

According to a report in Globes, the Bank of Israel blames the government for the rise in home prices and says that the total housing credit has ballooned 70% in seven years, from 169 billion shekels in January 2007 to 287 billion shekels at the end of 2013.