Full-Price Home Demand Continues Despite Gov’t Discount Programs

YERUSHALAYIM -
Construction work on new homes outside Afula. Photo by Nati Shohat/Flash90
Construction work on new homes outside Afula. (Nati Shohat/Flash90)

Despite declarations by the government that it is constantly expanding the supply of affordable homes under the various programs instituted – such as the the Price Resident program, in which builders promise to provide a percentage of homes in a project that will be affordable and set aside for qualified families who do not own homes – Israelis were continuing to buy full-priced homes at a greater pace than ever.

New home sales on the private market rose 12 percent in May over the previous month, a figure that was 8.4 percent higher than the previous May. According to the Central Bureau of Statistics (CBS), 2,888 homes were sold in May 2016, compare to 2,578 in April, and 2,664 in May 2015.

The increase affected nearly all areas of the country, including the north and south, where sales had generally not been as strong.

Meanwhile, construction continues apace, with a rise in the number of apartments under construction. Currently, 28,279 homes are either for sale or under construction. However, most of those homes are in the early stages of building, the CBS noted.