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Figures launched by the Central Bureau of Statistics final Friday confirmed dwelling costs rising at a fee not seen for greater than a decade, of 19% in a 12 months. That is regardless of sharp rate of interest hikes by the Financial institution of Israel, and reviews of a decline in gross sales and of different indicators of a cooling market.
Nonetheless, the Ministry of Finance is certain that the Central Bureau of Statistics numbers don’t essentially painting an overheated market. “The house costs index for July-August printed by the Central Bureau of Statistics produced many headlines, a few of them inaccurate, resembling these declaring that persons are persevering with to snap up houses,” says Galit Ben Naim, a supervisor within the Ministry of Finance Chief Economist Division.
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“In August, the decline within the variety of transactions in each new and secondhand houses continued, and even gathered tempo. The entire was 8,300, which represents a 41% decline compared with August 2021. Excluding purchases underneath the Purchaser Value program, the variety of transactions was 7,800, 38% fewer than in August final 12 months, and 12% fewer than within the previous month,” Ben Naim says.
In accordance with Ben Naim, in a publish on her Fb web page, the sharp decline in transaction numbers didn’t spare the contractors, who offered 2,900 houses in August this 12 months, 44% fewer than in the identical month final 12 months. “If these digits look acquainted, maybe it’s as a result of the brand new dwelling value index printed by the Central Bureau of Statistics confirmed a 4.4% rise in July-August. By the way, gross sales by contractors in July-August have been the bottom for the reason that nadir recorded when the Covid-19 pandemic broke out,” she writes.
“There are a number of potential explanations for the discrepancy between the accelerating fee of value rises, as mirrored within the Central Bureau of Statistics’ index, and the decline within the transaction numbers, which has been rising steeper since April, a few of them too difficult to enter into right here, however that is actually not the identical market as we noticed in 2021, with sharp jumps in each costs and within the variety of offers.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on October 18, 2022.
© Copyright of Globes Writer Itonut (1983) Ltd., 2022.
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