The index is lower than expected: apartment prices are decreasing

The Central Bureau of Statistics published today (Tuesday) the Consumer Price Index for the last month of July. Last year there was an increase of 1.1%, and this year an increase of 0.4% was anticipated. In the end, the index stands at a slight increase of 0.3%.

According to the data, the Consumer Price Index rose by 0.3% in the month of July 2023. Over the past twelve months (July 2023 compared to July 2022), the Consumer Price Index increased by 3.3%. Significant price increases were recorded in the following categories: fruits and vegetables, which increased by 3.4%, housing and transportation, each of which increased by 0.7%, housing maintenance, which increased by 0.6%, and food, which increased by 0.4%. Significant price decreases were observed in the categories of clothing and footwear, which decreased by 4.8%, and furniture, household equipment, and communication, which decreased by 1.2%.

Rent is on the rise

Regarding the clause of non-public rental rates, the price increased by 0.5%. It should be noted that in the monthly rental rates for tenants who renewed their contracts, an increase of 3.8% was recorded, and for new tenants (apartments in the sample where there was a change of tenant), an increase of 9.0% was recorded.

Changes were observed in apartment prices. Comparing transaction prices conducted in the months of May to June 2023 with transaction prices conducted in the months of April to May 2023, it was found that apartment prices decreased by 0.2%.

In the breakdown by regions, the following price changes were recorded: Jerusalem (0.3%), Northern District (0.5%), Haifa (0.5%), Central District (0.0%), Tel Aviv (1.3% decrease), and Southern District (0.0%). According to the data, prices of new apartments decreased by 0.6%. In a year-over-year comparison of transaction prices conducted in the months of May to June 2023 versus transaction prices conducted in the months of May to June 2022, it is shown that the annual apartment price index increased by 5.2%.

In the breakdown by regions, the following annual price increases were recorded: Haifa (8.9%), Northern District (8.5%), Jerusalem (6.6%), Southern District (5.2%), Central District (5.2%), and Tel Aviv (2.0%). The annual index of prices for new apartments increased by 5.8%.

In the second quarter of 2023, the average nationwide price stood at 1,968.9 thousand NIS, a decrease of 0.6% compared to the average price in the previous quarter (1,980.8 thousand NIS).