Government decided to extend a price plan to the resident by the end of 2020

At the end of a government meeting held today, it was decided unanimously to extend a price plan to the resident by the end of 2020. To this end, the Ministry of Construction and Housing will allocate NIS 36 million from the development budget and public institutions.
Minister of Construction and Housing, Yifat Shasha-Biton, submitted the proposal to expand the plan after it was approved by the Israel Lands Council last November - and has now received final approval. It should be noted that since this is a transitional government, the court's consent is also required.
 Council chairman and finance minister Moshe Kahlon said: "Approval of the program by all professional bodies proves its success and vitality by continuing. "Price to the resident" has revolutionized the housing market by finally raising young couples to the top of the national priorities and giving them a real opportunity to buy an apartment at a fair price, and they're jumping on it. "
In the meantime, it is stipulated that the marketing of the apartments under the plan will continue until the end of June 2020, and then, subject to a budgetary source and with the approval of the next government, the program will be implemented as stated until the end of 2020.
The RMA data shows that since the plan was implemented in 2015, land tenders for 115,912 housing units have been published and deals have been made for land to build 90,542 housing units. Approximately 80% of the apartments allocated by RMI during this period were within the cost of the dwelling, about 71.5 thousand, compared with about 19 thousand for the free market. The discount on the apartments ranged from 19 to 25 percent of the value of the apartment.
According to Adiel CEO, Adiel Shamron, "Price plan for housing combined with housing marketing by RMI, in scale that never existed, effectively eliminated the shortage created in previous years for land for housing and created a good opportunity for housing for Israeli citizens."
"Apartment prices rise more than 15%"
In aggregate, the assumptions on land prices allocated for the scheme reached over NIS 6 billion. it was worth it? Not sure. This, among other things, failed after a significant portion of the land allocation tenders for contractors under the scheme. Recently, many voices have also been heard among real estate executives against the plan.
With regard to the decision, the contractors association warned of a continued rise in prices caused by the plan. "Because the price per dweller is aimed at the market segment of homeless couples (which constitute less than 20% of home buyers in Israel), the plan has led to a critical shortage of housing supply for investors and investors, resulting in a prolonged and sharp rise in rental prices and pressures for price increases in the Gush Dan area" , Said Raul Sarogo, president of the Builders Association.

The number of new dwellings purchased in the first three quarters of 2019 is 43% higher than the number of dwellings purchased in the first three quarters of 2018 and 16% more than in the corresponding period in 2017 - according to CBS data (Central Bureau of Statistics). Statistics).
The city that led the acquisition of the new apartments in the third quarter was plowing, followed by Jerusalem, Ramat Gan and Tel Aviv.
In the third quarter of the year, 7,440 new apartments were sold, down 2.7% from the amount sold in the previous quarter; However, seasonally adjusted, this is an increase of 2.7%, and the total number of new homes sold has increased since April 2018 at a monthly rate of 2.4% compared to the previous month.
However, between the three months of the third quarter there was a big difference in the pace of sales: 2,730 new apartments were sold in July 2019, making it one of the months with the most sales in the last three years; In contrast, in September of this year, 2,088 apartments were sold. Although this is a relatively high number for September 2017 and September 2018, but in contrast to the last two years, this year the holidays began only at the end of the month, so the reason for the decline is different, and it is very likely that October will hit a slump in sales.
As has been the case throughout this year, the reason for the increase in purchases is the cost of housing projects that shed apartments a year and two ago, and are now under construction and signing contracts with winners. Harish reached first place in the sale of new apartments, after selling 407 apartments; Jerusalem came in second place, with 364 apartments sold, in Ramat Gan 317 apartments were sold, and in Tel Aviv 288 apar

The CPI fell 0.2% in September 2019, according to the Central Bureau of Statistics (CBS).
From the beginning of the year, the CPI rose 0.6%, but this is the third negative of the last four indices. The actual inflation rate (in the last 12 months) has fallen to 0.3%, compared to 0.6% in August, which puts the Bank of Israel in trouble. The low inflation rate may justify a reduction in the interest rate from its current level, although before the next interest rate decision the October index may balance the picture.
Price declines were recorded especially in the cultural and entertainment sectors (minus 2.8%), transport (minus 1.1%) and food (0.6% decrease). However, price increases were recorded in fresh vegetables and fruits (4.3% increase), education services (1.8%) and furniture and equipment The CPI excluding housing has declined 0.1% in the last 12 months.
Regarding the housing market prices, a measure that is not part of the CPI, comparing the prices of transactions carried out in July to August, compared to the prices of transactions carried out in June to July, it was found that housing prices rose by 0.1 %, completing a 1.3% increase over the corresponding period last year. (July 2018 to August 2018).
In the segmentation of housing price changes by districts in July to August compared to June to July, price increases were found in the following districts: Jerusalem and Northern 0.6% each, Central 0.4% and Tel Aviv 0.1%; In contrast, price reductions of 0.9% were recorded in each of the Haifa and Southern districts.
In the segmentation of housing price changes by districts compared to the corresponding period last year, July to August, compared with July last year to August last year, it was found that noticeable price increases were recorded mainly in the Northern District 4.5%, Tel Aviv 2.7% and Haifa 1.4%. On the other hand, in the Central District there was a decrease of 1.2%.
The price of new housing prices has been found to fall in July to August, from 2.8% in June to July. The percentage of transactions carried out with government support and participation in the calculation is 42.1% compared to 35.9% in the previous period (June 2019 - July 2019).
From the comparisons of transactions made in the current period compared to the corresponding period last year, July to August, compared with July 2018 - August 2018, it was found that the prices of new apartments fell by 3.7%.