Housing sales in Israel hit a 20-year high in 2020

In 2020, there were 107,100 housing deals, while it was among the highest numbers in recent years. 62,000 deals were completed in the second half of the year, the largest number of homes sold in a six-month period in 20 years, according to a residential real estate survey published by the Finance Ministry’s Chief Economist’s Office. 2020 was an exceptional year in every sense of the word. Residential property sales in the first two months were very strong, continuing the trend from 2019. But after that, the Covid-19 pandemic hit and sales fell between March and May before slowly recovering with an unprecedented boom in the second half of the year. Supported by the government cut in the purchase tax on owning more than one home, returning investors to the market RELATED ARTICLES GOVERNMENT RESEARCH: Israeli housing prices rise 4% annually in Eilat to build the first-ever seaside neighborhood. Demand in Israel doubles for homes with gardens and the boom in December reached 13,400 housing deals – a figure that was only surpassed in June 2015 and December 2013. In December 2020, buyers included large numbers of investors, young couples, and people moving into larger homes. Investors bought more than 2,000 homes per month in the final months of the year, heading towards pre-2015 levels, when then Finance Minister Moshe Kahlon introduced a higher purchase tax on investors. December 2020 was an especially good month for construction contractors with 5,400 new homes sold including as part of the government’s Fixed Buyer Price Program. In the second half of 2020, 38% of all housing deals were for new homes. In December 2020, young couples bought 6,200 apartments, including 1,600 as part of a fixed buyer price program and the highest number in more than 10 years and since the 2011 social protests against the rising cost of living and the lack of affordable housing. Most experts expect the boom to continue into 2021 as prices are expected to rise 3% -4% over the next year, according to the government’s forecast. Posted by Globes, Israel business news – en.globes.co.il – on February 11, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021