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The finance report reveals: this is the average salary of the buyers of the first apartment in the center | Israel Hayom

2022-08-15T10:16:36.883Z

According to the report of the chief economist, the average salary per household of first-time home buyers in the central region in June was NIS 20.2 thousand, gross per month • At the same time, the findings of the report indicate a continued cooling of the real estate market



The report of the Chief Economist published today (Monday) shows that the high apartment prices in the central area caused an increase in the leverage rate of the young buyers in the central area.

The average salary per household of first-time home buyers (on the free market) in the central region in June was NIS 20.2 thousand, gross per month.

This salary is nominally 12% lower than the average salary of first home buyers in this area three years ago.

This, while the prices of the apartments purchased by the young couples in this area in June of this year increased by 36% on average during that period.

A similar analysis conducted by the Ministry of Finance in May, among first-time home buyers in the Besh area, also revealed findings that suggest a significant increase in the leverage of young couples, but the wage differences between the buyers in May 2022 compared to May 2019 were significantly lower than those recorded in the central area.

A construction site in south Tel Aviv. Photo: Ewave Nadlan

Alternatively, these findings could indicate a higher financial support for the parents of young couples who purchase their apartment in the center, compared to those who purchase their first apartment in the periphery.

The report also shows that in the city of Tel Aviv there was a sharp increase of 18% in first apartment purchases in June compared to June last year, after a decrease in these purchases was recorded in the previous three months.

In Tel Aviv there was a sharp increase of 18% in first apartment purchases, photo: Shutterstock/Afikim38

Sales promotions by several contractors may have contributed to this jump in purchases by young people in the Tel Aviv area (63% of the apartments they purchased were new apartments). Also, Tel Aviv stands out for its relatively high prevalence of buyers employed in the high-tech industry (about a quarter of the buyers), with their average salary being NIS 58.6 thousand, almost twice as high as the average salary of all first-time home buyers in this area in June.

A drop in the number of transactions

The findings of the chief economist's report indicate a continued cooling in the real estate market.

According to the report, in June the downward trend in the total number of transactions continued and even intensified. The total number of transactions was 10.5 thousand (including "price per resident"), a sharp decrease of 24% compared to June last year. This is the sharpest rate of decrease since May 2020, which was affected by a hack The Corona epidemic.

Investor purchases in June amounted to only 1,600 apartments, a sharp decrease of 43% compared to June last year.

This is the sharpest rate of decline in investor purchases since last December, the first month after the purchase tax increase.

As a percentage of total transactions, the weight of investors was 16%, three percentage points lower compared to June last year.

The report points to a cooling of the real estate market, photo: Yehuda Peretz

In terms of investor preferences, the report shows that the top ten cities in investor purchases in June were Tel Aviv, Haifa, Jerusalem, Beer Sheva, Bat Yam, Ashkelon, Eilat, Ramat Gan, Rishon Lezion and Ramat Hasharon.

Compared to the previous tax increase in June 2015, it was found that the average of investor purchases in the seven months after the tax increase is 5% lower compared to the one recorded after the previous tax increase (at the end of June 2015).

The magnitude of the decrease in investor purchases is also 5 percentage points higher compared to the previous tax increase.

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Source: israelhayom

All news articles on 2022-08-15

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