Housing sales: The 2nd hand market fell, the new housing market has increased

Housing sales data for May point to a reverse trend between the second hand market and the new housing market. While in the second hand market fell, the new housing market has increased compared with May 2018. The cause of the surge in sales of new apartments in May, were apartments and occupant price. Excluding transactions in government subsidy (occupant price), there was a 5% drop in the number of transactions on the open market in May compared to May 2018. This emerges from a survey of the residential sector for May 2019 published by the Chief Economist of the Ministry of Finance.
The survey notes that the decrease in transactions in the open market was recorded in the second hand apartment segment, at a rate of 9% compared with May of last year. The decline in second-hand transactions was recorded in all regions except for the central region, where growth was 7%, and the Hadera area, which remained stable. Sharp declines in second-hand transactions were recorded in Jerusalem (-25%) and Tiberias (-23%). The steep rate in second-hand transactions in Jerusalem, for example, can be explained in the publication of auctions that discriminate against a large-scale participant in the downfall of Arnona and Old Katamon.
The review also includes a reference to the sale of new apartments on the open market, according to which there was a 12% increase in sales of new apartments compared to the same month last year. This increase continues to increase in this area, which was also recorded in April. However, the survey authors emphasize that while in April the sharp increase in sales encompassed all regions, in May there is a high variance between regions of the country.
"Alongside the areas of Rehovot and Tel Aviv, which recorded sharp growth rates, sharp declines were recorded in Jerusalem and the north," the survey said. In the Rehovot area, there was a 49% increase in sales compared with May of last year. In the Tel Aviv area there was an even higher increase of 62% for this period. In contrast, in Jerusalem there was a decrease of 33%, and in the Nazareth area sales decreased by 28%.