Decrease of 35% in the number of real estate transactions in December: 11,800 apartments

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by Ifi Reporter Category:Real Estate Feb 27, 2022

After the highs of November, a decrease in the number of real estate transactions in December due to the increase in the purchase tax for investors, but still a historic record at an annual level: About 35% of the November peak of 18.2 thousand apartments per month. Compared to December 2020, there was a decrease of 12.5%. In an annual summary, about 151,000 apartments were purchased in 2021, a historical record level, which is 27% higher than the previous record recorded in 2015. Compared to 2020, this is an increase of 40%.
These data are not surprising after the publication of CBS data according to which 56,061 new dwellings were sold in 2021, an increase of no less than 37% compared to the quantity sold in 2020 - and the highest annual number since they began collecting the data in 2004. Recall that according to the data CBS Housing prices rose by 1.5% in November-December 2021 compared to October-November 2021, thus completing a dramatic increase of 11.3% compared to the same period last year (November-December 2020).
After deducting transactions under the "price per occupant", the number of transactions in the free market in 2021 was 136.2 thousand, also a historic record level, 14% higher than the previous record level recorded in 2015. Compared to 2020, this is an increase of 46%.
As expected, those who led the decline in purchases in December were the investors, with the total number of dwellings purchased being only 1.2 thousand dwellings, a sharp decline of 82% compared to the exceptional level recorded in November, before raising the tax rate. Compared to December 2020 this is a sharp decrease also at a rate of 52%. At the rate of total transactions, the weight of investors was only 10.4%, a sharp decrease of 25.5% compared to last November.
Investors' sales in December amounted to 2.4 thousand dwellings, a decrease of 37% compared to the previous month and an increase of 2% compared to December 2020. "Inventory" of dwellings by investors decreased by 1.1 thousand dwellings, after "inventory" increased in the previous twelve months This is close to 6,000 apartments, following the reduction of the purchase tax at the end of July 2020.
Similar to the CBS data, contractors 'sales in December amounted to 4.6 thousand apartments, a decrease of 31% compared to the previous month and a decrease of 15% compared to December 2020. Excluding government subsidized sales, contractors' sales in the free market in December amounted to 3.1 thousand apartments, a decrease Of 44% compared to the previous month and a decrease of 18% compared to December 2020.
According to the Ministry of Finance, the total number of transactions in second-hand apartments in December was 7.1 thousand, a decrease of 11% compared to December 2020 and a sharp decrease of 38% compared to the high level recorded last November.
In a geographical segmentation, it was found that the sharp decline in the number of transactions compared to November encompassed all areas, with the rate of change ranging from a 27% decrease in the Hadera area to a 53% decrease in the Tel Aviv area. In November. Compared to December 2020, the BS area stands out with a 5% increase in the number of transactions in second-hand apartments (compared with a 11% decrease at the national level), with this finding largely explained by the most moderate (though sharp) decline in investor purchases in this area. Of all the regions.
In the segmentation of investors 'purchases by real estate taxation areas, it was found that the sharp decline in investors' purchases after the acquisition tax increase covered all areas in a similar way, compared to the high level recorded in November, before the tax increase. On the other hand, compared to December 2020, there is already a greater variability in the rates of change in investor acquisitions in the various regions, with the sharpest decline rate recorded in the Tel Aviv area, where investors' purchases fell by 66%. At a rate of "only" 27% compared to December 2020. The Ministry of Finance notes that the previous tax increase, at the end of June 2015, recorded a similar decline in investor purchases in the BS region, which was the most moderate decline in demand areas. Tel Aviv, the decline in investor purchases.

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