Israel’s Treasury reported a decline in first-time home purchases by young couples in July, even as the overall housing market saw a rebound from June’s historically low activity caused by the “With Kalbi” war.
A total of 8,011 homes were sold last month, including government-subsidized units, marking a 10% drop from July 2024. Compared with June, however, sales surged 36% from the exceptionally low monthly level, according to the Treasury’s Chief Economist Department.
Excluding government-subsidized units, 7,249 homes were sold on the open market, an 11% year-over-year decline but a 36% increase from June, bringing activity back to March levels. The moderate drop in total transactions reflected stable resale home sales alongside a continued sharp decline in new developer sales.
Developer sales totaled 2,726 units, including subsidized apartments—a 28% decline from July 2024 but a 40% jump from June. Excluding subsidized units, developer sales on the open market were 1,964 homes, down 34% from last year but up 36% from June. Treasury officials noted that June sales were the lowest for that month since 2003.
Over the past four months (April–July), developer sales on the open market did not surpass 2,000 homes. In comparison, only one month in 2024, October, fell below that threshold, driven by the Jewish High Holidays. Of new purchases “on paper,” 59% were new developments, slightly down from June and lower than last July by four percentage points.
Financing incentives offered by developers remained steady in July, with 37% of the studied regions reporting such benefits, led by the central district, where incentives remained above pre-Bank of Israel limit levels.
Resale home sales totaled 5,285 units, up 3% from last year, standing out against steep declines in developer sales. Compared with June, resale transactions rose 36%. Nationally, the prevalence of sales including reinforced security rooms (Mamad) remained stable, though the central region saw an increase.
First-time buyers purchased 3,705 homes, a 13% drop from July 2024, following sharp declines in previous months. Compared with June, first-time purchases rose 40%.
Upgrading homeowners bought 2,350 units, down 6% from last year—the smallest decline across segments—while downsizers accounted for 30% of transactions, up two points from June.
Investor purchases fell to 1,194 homes, a 14% year-over-year decline but a 41% increase from June. Investors favored resale over new developments. Total investor sales amounted to 1,603 units, down 6% from 2024 but up 47% from June 2025.
The report highlights continued market volatility influenced by both geopolitical events and policy measures, with varying impacts across first-time buyers, investors, and developers.