Are investors exiting the market? (Photo: ShutterStock)
A report by the Chief Economist to the Ministry of Finance, published on Monday, shows: Investor purchases in March totaled only 1,045 homes, indicating a decline of 47 percent compared with March of last year, in what constitutes the sharpest decline in the past four months.
Investor sales in March also declined sharply, with only 1,238 homes, a sharp decline of 51% compared to March of last year, and similar to the rate of decline in the total number of second-hand transactions compared to the same time period.
Total apartments purchased for investment and their share of total transactions (Photo: screenshot, report by the Chief Economist at the Ministry of Finance)
The report also shows that the stock of homes held by investors continued to decline in March, during which 238 homes were subtracted from this inventory – a decline that joins the consecutive declines in this inventory since December 2021, following the increase in purchase tax on investors.
Against the background of this figure, it should be noted that in the two months preceding the tax increase (October-November 2021), there was a sharp increase in investor purchases, which led to an increase of about five thousand apartments in the "inventory" of apartments in the hands of investors during those two months. The decline in inventory since December 2021 totals 7,7 homes. That is, since October 2021, about two thousand seven hundred apartments have been subtracted from the inventory.
More in Walla!
Beat the Pain: B-Cure Laser in an Unprecedented Experience
Contributed by B-Cure Laser
Investors, net purchases (purchases net of investor sales) January 2015-March 2023 (Photo: screenshot, report of the Chief Economist at the Ministry of Finance)
No longer investing in Tel Aviv?
A geographic breakdown shows that the sharp decline in investor purchases encompassed all regions, with a particularly prominent decline in the areas of Rehovot (a decline of -61%), Tel Aviv (-59%), Hadera (-65%), and Netanya (-56%).
Sales campaigns by contractors in the Be'er Sheva area contributed to the moderation of the rate of decline in investor purchases in this area, which stood at -17%.
The Tel Aviv area recorded one of the lowest levels of investor purchases in this area since at least the beginning of the 2020s, with a lower level recorded only in April <>, which was overshadowed by the outbreak of the COVID-<> pandemic and the first lockdown.
In addition, a geographic breakdown found that the sharp decline in investor sales encompassed all regions in a similar manner.
- Real Estate
- news
Tags
- Real Estate
- Investments