The figure for new mortgage loans has fallen every month since May, a trend not seen for years.
New mortgage loans in Israel are at their lowest since the country emerged from Covid-19 lockdowns. Last month, the total of mortgage loans taken was NIS 6.089 billion, the lowest monthly figure since June 2020. Although most of the Jewish holidays fell in October this year, the figure is still low – 15% below the new mortgage total for the Jewish holiday season in 2021, according to analysis by the Bank of Israel.
New home sales in Israel hit three-year low
The Israeli real estate market continues to cool down rapidly, and the mortgage figures are harbingers of the trend. Since last May, the figure for new mortgage loans has fallen every month, something that has not happened for years. The new trend is a direct result of the interest rate hikes by the Bank of Israel, and it can be deduced from the numbers that the trend has nothing to do with increased supply of homes, as government officials have tried to argue recently.
Nevertheless, it should be borne in mind that at least up until the most recently published home price index, home process have continued to rise steeply. Although many people have abandoned the housing market, those who have decided to stay in and buy properties have contributed to a rise in prices.
Published by Globes, Israel business news – en.globes.co.il – on November 13, 2022.
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