While you can still find good deals on affordable homes in northern Israel, buying property in Israel is not as cheap as it used to be. Even though fewer contracts were closed in the past quarter, prices are not coming down. In fact, sellers are raising their prices. The main problem is the lack of housing stock. And, the lack of private land available for sale upon which to build. Investor purchases have slowed, but this has nothing to do with the price of homes and everything to do with the new tax structure.
Our advice is that you lock in your home in Israel now, because the prices are not going to come down, and you will have an investment that will increase in value. Even if you never live in the home and sell it, you will make some money. Best is to buy now and come when you are ready. Or better yet…come now!
Israel Real Estate
Homes Sales and Prices on the Rise
A lot of potential buyers were sitting on the fence, waiting for the elections to finish and new government initiatives to materialize that would address the issue of affordable housing. But it seems they have decided to jump down and start buying, since prices continue to climb and there is not really so much relief coming from the government. The spike in purchase tax also caused a flurry of purchase activity during the quarter, as overseas investors rushed to conclude their purchase contracts before the new rates became effective.
According to a recent Globes article, a survey of 16 cities across Israel shows that property prices have risen 5% from a year ago. Be’er Sheva saw the biggest jump, with second quarter prices 14% higher than second quarter of 2014. As expected, cities in the center saw higher prices from 2014.
Northern Israel prices are also increasing, but it is still so much more affordable here than in the center of Israel. There are beautiful cities, moshavim, yishuvim, and kibbutzim to choose from. Be in touch and let us help you find your dream home. Or, buy your lot and build your own dream home in the Galil!
See for more. http://www.globes.co.il/en/article-govt-assessor-israeli-home-prices-up-27-in-q2-1001061369
Price of homes in Israel have risen by 3.2% over the past 12 months according to officials at Bank of Israel.