Housing snapshot: Home sales and rentals across Israel in December 2025 |
Home prices in Israel fell in September and October for the eighth consecutive time, indicating that high interest rates and shifting demand are placing significant downward pressure on one of the world’s most expensive housing markets.
Prices dropped 0.5 percent in September-October compared to August-September, and have fallen by some 2.6% in the last eight months, according to the most recent information available from the Central Bureau of Statistics.
Home prices have risen only 0.1% over the past 12 months, representing a “noticeable cooling” of the market, CBS said. Earlier this year, the market’s annual growth had peaked at 7.8%.
The housing market has slowed in recent months, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, the highest level in years at NIS 3.20, is also affecting demand by overseas buyers.
During the past month, prices rose by 1.4% in Jerusalem, but fell by 2.1% in the south, 1.1% in Tel Aviv, 0.6% in Haifa, 0.4% in the central district, and 0.2% in the north. New home prices dropped by 1.4%.
Over the past 12 months, prices have risen by 8.9% in Jerusalem, 5.5% in the north, 1.2% in Haifa, and 0.5% in the south. In Tel Aviv, prices have declined by 2.9%, alongside a 2.7% decline in the central district.
According to Finance Ministry data for October, a total of 4,518 apartments were sold, a 12% decline from a year ago, and the lowest monthly total since November 2023.
It was one of the slowest months for deals since the turn of the century, with fewer deals recorded only in October 2023, after the outbreak of the war; October 2011, during the social justice protests; and October 2008, at the outset of the global financial crisis.
The volume of homes bought and sold every month has been down year-over-year in every month of 2025 after peaking in December 2024, Finance Ministry data shows.
New apartment sales, including government-subsidized units, declined by 14% from October 2024 to 1,917 units. Secondhand apartment sales reached 2,601 units, a 10% decline compared to October........