Home prices surge continues

Home prices are again soaring. The average price of an apartment in Tel Aviv was 9.2% higher in the third quarter of 2013 than in the preceding quarter. The average home price rose by 10.6% in Haifa, by 5.9% in the Dan Region, and by 6.4% in the Southern District, according to the Prices of Dwellings Index, published by the Central Bureau of Statistics each quarter along with the monthly Consumer Price Index (CPI). The figures for the third quarter indicate that the average home price rose by 2.4% in the third quarter. The average price of a four-room apartment in Tel Aviv rose by 20% in the third quarter compared with the preceding quarter. Prices for apartments of other sizes in the city also rose sharply: the average price of a two- or three-room apartment rose by over 7%, and the average price of a five-room apartment rose by 6%. According to the Central Bureau of Statistics, the average home price rose to NIS 1.24 million in the third quarter from NIS 1.21 million in the preceding quarter and NIS 1.16 million in the corresponding quarter of 2012.

The average price of an apartment in Tel Aviv rose to NIS 2.25 million in the third quarter from NIS 2.06 million in the preceding quarter and NIS 1.95 million in the corresponding quarter. Rents are also going in just one direction. The average rent was 1.9% higher in the third quarter than in the preceding quarter. The biggest rise in rent was in Tel Aviv, where the average rent for apartments of all sizes was 3.2% higher in the third quarter than in the preceding quarter. The average rent rose by 2.1% in Jerusalem and in the Sharon, and by 1.5% in Haifa and the Krayot. According to the Central Bureau of Statistics, the average rent rose to NIS 3,526 nationwide in the third quarter from NIS 3,460 in the preceding quarter. The average rent in Tel Aviv rose to NIS 5,342 in the third quarter from NIS 5,174 in the preceding quarter.

While there was no drop in rents, the Prices for Dwelling Index showed a drop in home prices in some areas. The biggest drop was in Jerusalem, where the average apartment price was 4.9% less in the third quarter than in the preceding quarter. A sharp drop in the average price for five-room apartments, which fell by 6%, pulled down the average price for apartments in the capital. The average price of apartments of all sizes in the Sharon fell by 1% in the third quarter compared with the preceding quarter.

Source Globes