The persistent rise in housing prices in Israel over the course of 2022 slowed in November but home costs were still up close to 19% compared to the same period in 2021, according to new figures released Sunday by the Central Bureau of Statistics (CBS).
The newest housing report showed that housing prices rose by 18.8% 2022 compared to 2021.
Israel’s housing market is characterized by high demand due to population growth and inadequate supply, driving up housing prices at dizzying rates in recent years. Housing prices across the country have been climbing steadily since the second half of 2018, with a brief pause in 2020 at the height of the COVID-19 pandemic.
Spiraling housing costs and the rising costs of living remain key grievances with Israelis, more than a decade after the country last saw widespread social unrest on the matter.
These rises have substantially increased monthly mortgage payments for borrowers. With a majority of mortgages still tied up in variable interest rate deals, the costs rise each time base rates rise. The increases have also contributed to a cooldown in purchase transactions, as fewer mortgages were borrowed starting in October.
Experts are predicting Israeli housing prices may fall or plateau in 2023 as Israel’s housing crisis deepens.
Source TOI/ Photo Michael Giladi/Flash90