Home prices in Israel rose sharply in October and November after eight consecutive months of decline, according to the most recent information available from the Central Bureau of Statistics, published on January 15.

Prices rose an average of 0.7 percent during the period, after falling by some 2.8% over the last eight months.

For the last 12 months, home prices have risen only 0.1%, representing a “noticeable cooling” of the market, CBS said. Earlier in 2025, the market’s annual growth had peaked at 7.8%.

The housing market had slowed throughout most of 2025, 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, currently at its highest level in at least four years at NIS 3.09, is also affecting demand by overseas buyers.

During the two months, prices rose by 1.5% in Jerusalem, 1.2% in Tel Aviv, 0.5% in the north, 0.5% in the south, and 0.3% in the central district. Prices declined 0.3% in Haifa. New home prices rose by 1% during the period.

Over the past 12 months, prices have risen by 9.4% in Jerusalem, 5.4% in the north, 1.2% in the south, and 0.5% in Haifa. Prices declined by 2.9% in the central district and 2.8% in Tel Aviv.

As of July 2025, there are 3.02 million apartments in Israel, CBS said earlier this month. That’s an increase of 1.9% from the previous year, about the same growth rate as previous years. Israel’s population grew by about 1.1% in 2025, one of its lowest growth rates ever, CBS said last month.

Some 44.1% of Israel’s apartments are located in Tel Aviv and the central district, data showed. About 15.5% are in the north, 13.5% in the south, 13.4% in the Haifa area, 10.3% in the Jerusalem area, and 3.2% in the West Bank.

According to Finance Ministry data for November, a total of 7,377 apartments were sold, a 3% rise from a year ago. The number of sales rose 63% from the previous month, a........

© The Times of Israel