Haifa leads increase in home prices
Gazit-Globe Real Estate Institute finds apartment prices in northern Israeli city rose 8.5% in second quarter of 2013, pushing national price index up. Tel Aviv metropolitan area, Jerusalem record slowdown in housing prices' change rate
The northern city of Haifa
leads the increase in housing prices in Israel
in the second quarter of 2013, with an 8.5% rise in real estate prices compared to the first quarter of the year, according to a review of the apartment price index conducted by the Gazit-Globe Real Estate Institute at the Interdiciplinary Center (IDC) in Herzliya.
According to the figures, the changes in apartment prices are not of a similar nature across the country. In the Tel Aviv metropolitan area, Jerusalem and the Krayot area, the figures point to a slowdown in the housing prices' change rate, while Haifa climbed by nearly 10% and the central district recorded a 2.5% increase in the second quarter.
Real Estate Bubble
The Media Line
Housing prices continue to climb as wages grow more slowly. According to Bank of Israel report, some 20% of borrowers in danger of default
The southern district, on the other hand, recorded a 3% drop in housing prices in the second quarter of the year, while the northern district saw a drop of less than 1%. The Tel Aviv metropolitan area registered a 1.1% drop in apartment prices in the second quarter of 2013, and Jerusalem recorded a price reduction of about %0.5.
14% annual increase
Haifa appears to be exceeding Israel's other regions on the annual outlook as well. From July 2012 to July 2013, apartment prices in the northern city went up 14%, while according to the Gazit-Globe Institute's national figure, home prices rose 3.4% on an annual level.
Tel Aviv recorded an annual increase of 3.5% in apartment prices, Jerusalem – 5%, the Tel Aviv Metropolitan area – 2.3%, and central Israel – 3.8%. Northern Israel registered an annual increase of 8.7%, and southern Israel – just 0.5%.
According to Dr. Efrat Tolkowsky, the academic director of the Gazit-Globe Real Estate Institute, "This unique index divides the country into regions, revealing high variance in trends. While in Tel Aviv, the Tel Aviv metropolitan area and Jerusalem prices are stable, Haifa recorded an 8% rise in housing prices, which completes a 14% annual increase.
"What we are seeing here is possibly a gap bridging in the periphery which will be moderated – if the increase in housing prices around the country is moderated.
