Home Prices in Israel Rose 6% in First Quarter of 2013

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The average price of new homes rose on average by 6% in the first quarter of 2013 compared to the last year’s first quarter, while secondhand homes rose 5% compared to the first quarter of 2012, according to data released this week by the Housing and Construction Ministry.

The average new home sold for NIS 1.5 million during January-March 2013, while the average previously owned home cost NIS 1.128 million for the same period.

In Tel Aviv, prices rose by just under 9% in the first quarter of the year compared to Q1 of 2012. In Jerusalem, the figure was 9%, while in Haifa prices rose by just 1.4%.

In a larger city like Tel Aviv, there were, as expected, major disparities depending upon the neighborhood.

The average home price was NIS 2.18 million, but new home prices in Tel Aviv soared by an average of 24% in the first quarter to an average of NIS 2.67 million, while secondhand homes rose by just 1.2% to an average price of NIS 1.99 million.

There remained places around the country where a secondhand four-room apartment could be bought for less than NIS 1.2 million, notably in Rehovot, Gadera and Yavneh, south of Tel Aviv, and Beit Shemesh, west of Jerusalem. In Lod and Ramle, two relatively poor communities east of Tel Aviv, such apartments were available for NIS 770,000 and NIS 950,000, respectively.

The ministry also said that new four-room apartments were available for less than NIS 1.35 million in a number of communities, including Bnei Brak and Modi’in.

A number of communities saw particularly steep rises in housing prices, including Acre (29%); Tzur Hadassah (23%) outside of Jerusalem; Carmiel (22%) in the north; Givatayim (21%); and Nesher (20%) in the Haifa area. Among the communities that experienced the largest drops were Arad (15%) in the south; Ramat Hasharon (12%) just north of Tel Aviv; and Gedera (13%), south of the TelAviv area.

Construction in Beitar Illit: more-affordable housing for Haredim.Credit: Lior Mizrahi

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