Housing demand hits 13-year high

Demand for new homes rose to 4,180 units in August 2012, the highest level in 13 years, since December 1999, the Central Bureau of Statistics reported today.New home sales hit a two-year high in August, at 2,282 sales, 20% higher than in July, and more than double the number of sales in August 2011.

An all-time record NIS 5.8 billion in new mortgages was taken in August 2012 according to the Bank of Israel. New homes sales in August were 44% higher in the southern district compared with July, 40% higher in Haifa and 31% higher in central Israel. Sales were unchanged in Tel Aviv and Jerusalem and 27% lower in the northern district.

As a result of stronger sales of new apartments, new housing inventory has fallen 4% to 20,000 of which nearly 12,000 are in the center and Tel Aviv. At the current rate of sales the inventory will last 10 months.

Source Globes