New home sales jump

Israelis snapped up new homes during August. Demand for new homes jumped 13% in August compared with July, while sales of new homes soared 38% to the record levels that were last seen in May, the Central Bureau of Statistics reported today.

Demand for new homes amounted to 3,310 apartments in August compared with 2,920 apartments in July, the figure was highest demand since May. Sales of new homes were also the highest since May, with 2,102 new homes sold in August compared with 1,515 new homes in July. Longer term figures also pointed to higher demand.

Demand for new homes rose 1% between January and August 2010 compared with the corresponding period of 2009, although demand was down 2% compared with May-December 2009. Despite promises by Minister of Housing and Construction Ariel Atias to flood the market, the inventory of new houses continued to shrink in August. The inventory fell 2.2% to 9,370 apartments, the lowest number for many years. New homes inventory was 10,023 at the beginning of the year.

However, it should be stressed that new housing building starts has risen, but the current inventory is only enough for 7 months. In the center of the country sales of new homes rose 68% in August compared with July. New home sales rose 27% in Tel Aviv in August and 33% in the south.

Source Globes