Image building/processing site, Shutterstock
The buyers are on the fence and the contractors are in crisis:
in 2023, approximately 66,590 apartments were sold (new and there is a second), a decrease of 34.9% compared to 2022 - according to a report published today (Wednesday) by the Central Bureau of Statistics.
The report shows that 41.9% of the total apartments sold are new apartments, approximately 27,930 apartments.
This is a decrease of 30.7% compared to the year 2022. About a quarter of the new apartments were sold with government subsidies, 6,860 apartments.
This, when at the end of December 2023 the inventory of new apartments remaining for sale was about 67,760 apartments, and the number of months of supply (the number of months that will pass until all the apartments remaining for sale are sold) was 27.5 months.
For comparison, at the end of January 2023, the inventory of new apartments was 52,850, and the number of months of supply was 21.2 months.
Summary of the year 2023 in apartments for sale (new and second hand)/screenshot, CBS
30.0% of the remaining apartments for sale are in the Tel Aviv district (20,350 apartments) and 25.8% in the Central district (17,510 apartments).
In the major cities, Tel Aviv-Jaffa leads with approximately 7,830 apartments remaining for sale, followed by Jerusalem with 5,470 apartments remaining for sale.
Following these data, will we see a price reduction by contractors soon?
Also, 58.1% of the total apartments sold are second-hand apartments, approximately 38,660 apartments.
This is a decrease of 37.7% compared to the year 2022;
Examining the trend data shows that from September 2021 until now, there has been an average decrease of 2.8% in the total number of apartments sold.
The decrease in second-hand apartments sold is steeper than the decrease in new apartments, 3.2% versus 2.7%, respectively.
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How did the war affect the housing market?
LMS shows that the number of apartments sold in the fourth quarter of 2023 was the lowest - about 18.4% of the total sales that year. This is a decrease of 33.1% compared to the third quarter and 36.1% compared to the corresponding quarter in 2022. In the last quarter of 2023, about 12,250 apartments: 7,040 second-hand apartments and 5,210 new apartments.
Due to the war of iron swords that began in October, the figure for this month was the lowest in 2023.
In December, there was actually a recovery and 5,810 apartments were sold: 3,080 second-hand apartments and 2,730 new apartments. In comparison For the month of November 2023, this is an increase of 44.5% in the total number of apartments sold: an increase of 79.5% in new apartments and 23.2% in second-hand apartments. Excluding the seasonality of the more moderate observed increases - an increase of 21.5% in the total number of apartments sold: an increase of 44.8% in new apartments and 7.0% in apartments Second hand.
Despite the war: the southern district leads in apartment sales
The southern district leads with 23.0% of the total apartments sold in 2023. More than a quarter of the new apartments (25.7%) and 21.0% of the total second-hand apartments were sold in this district.
It is followed by the Central District with 23.2% of the total number of new apartments and 20.4% of second-hand apartments sold.
In new apartments sold, the most significant decrease compared to 2022 was in the Tel Aviv district - 44.3%;
In second-hand apartments, the highest decreases compared to 2022 were recorded in the central, southern and Tel Aviv districts - about 40.0% in each of them.
Jerusalem, Ashkelon and Nativot lead in the number of new apartments sold in 2023.
Haifa, Beer Sheva and Jerusalem lead in second-hand apartments sold in the same year.
Compared to 2022, in most localities a decrease was recorded, both in new apartments and in second-hand apartments.
In several localities there was an increase in the number of new apartments sold: Sderot, Nativot, Afula, Kiryat Bialik, Jerusalem and Ashdod.
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