In which group are you?

Bank of Israel divided the real estate buyers into three main groups:

One. First apartment loan - if a loan for the purchase of your first apartment. In this case the maximum financing rate will be 75%.

Two. Improved housing units - now the banks are not allowed to give mortgages over 70% for this group.

Three. Investors - in the case of buying a home for investment the financing rate will be 50%. The directive includes the purchase of foreign residents.

Bank of Israel hopes that the measures will not hurt too much the ability of young couples to buy their first apartment.

The directive enter into force on 01.11.2012.

Home prices in coastal cities

A study by the Gazit-Globe Real Estate Research Institute at the Interdisciplinary Center Herzliya found that home prices in coastal cities rose by 35-56% in 2007-11, with Ashdod leading the gain. Home prices rose by 39% in Tel Aviv in 2007-11 and by 74% in 2000-11.

The rise in home prices was reflected in the mortgage market. Bank of Israel data show a 65.2% of mortgages in January-November were taken for homes costing more than NIS 1.2 million, including 29% of mortgages for homes costing more than NIS 2 million.

The banks believe that the strong trends in the housing market will continue in 2013, although dramatic steps in the housing market, if any, by the new government could turn things around.

New home sales

Housing demand fell in November 2012 alongside a rise in new home sales. New home sales rose by 16% in November, compared with October. 
The Central Bureau of Statistics reports a 17% drop in demand for new apartments in November, compared with October. due to a 45% slump in new apartments not available for sale (homes built by the resident or by buyers groups, rental apartments, etc.)