Contractors sold only 1,819 apartments in Octobe which is a 68% decrease compared to October 202

The contractors sold only 1,819 apartments in October, which is a 68% decrease compared to October 2021 and a 34% decrease compared to sales in September - according to data published by the Central Bureau of Statistics (CBS). This is the lowest volume of sales recorded in the industry since the corona virus shutdown in April 2020.
The slump in contractor sales was caused by a combination of factors, chief among them the lack of working days during the holidays, which shut down activity in the first half of the month. Added to the effect of the holidays was a growing slowdown in apartment sales of all types as a result of the rise in interest rates on mortgages, a sharp decrease in the activity of investors in apartments and signs of a recession in the labor market.
In the 12 months that ended in October, the contractors sold 46,000 apartments, which is an 18% decrease compared to the 12 months that preceded them. The decrease in apartment sales also causes a decrease in the marketing and construction plans for new apartments, as the contractors try to regulate the supply to prevent the apartment prices from falling.
However, the CBS data indicates an annual increase in self-built apartments, in projects of purchase groups and build your house. In the 12 months that ended in October, the number of self-built apartments amounted to 18.5 thousand apartments, which is a 30% increase compared to the previous 12 months .
In the summary of the ten months of the year, 49.8 thousand apartments were added to the economy, sold by entrepreneurs and built by self-build. According to estimates based on the rate of population growth, the number required to satisfy the demand for new apartments is 60 thousand. The 2022 figures so far are approaching this number, but it is doubtful whether this trend will continue next year as well, in view of the apparent decline in the industry's activity.
The president of the Ha'aretz Builders Contractors Association, Raul Sargo, said: "The figures of the last two days are clear and reflect a jump in risk for the construction industry, for apartment buyers and for the entire economy. Those who are now presenting the decrease in the volume of apartment purchases as healthy for the market, are wrong and misleading. Fewer apartments are sold leaving more and more single-family homes. without a stable housing solution. The decrease in the number of apartments sold to investors is no less dangerous. It means a dramatic decrease in the number of apartments for rent that leaves apartment renters facing a broken trough. Even if the apartment price index, which will be published tomorrow, shows a moderation in the increase in apartment prices or even decreases in some places, It is not a sign of joy. As long as the real situation of the area does not change and the tremendous demand for apartments is not met with construction in the quantity and at a rate on a historic scale that the economy needs now, we will be approaching another period of price jumps."