Real estate: sales in June hit 20-year low in Israel
The steepest decline came in new housing transactions. Only 1,954 newly built units were sold last month, marking a 46% year-on-year fall
Israel’s housing market recorded its weakest June in more than two decades, with sales plunging amid ongoing conflict and tighter financing conditions.
According to figures released Sunday by the Finance Ministry’s chief economist, just 5,844 homes were sold nationwide in June, a 29% drop compared to the same month in 2024 and down 13% from May. The ministry said this is the lowest sales figure for June since the early 2000s.
The steepest decline came in new housing transactions. Only 1,954 newly built units were sold last month, marking a 46% year-on-year fall.
Analysts say the slowdown reflects both the uncertainty caused by the war and a cooling market following stricter regulations from the Bank of Israel.
Among the most significant policy changes was the cap on “20-80” payment plans, where buyers pay 20% upon signing and the remaining 80% upon receiving the keys, a move aimed at reducing developers’ risk but which has also dampened demand.
Market observers warn that unless security conditions improve and financing rules ease, housing sales could remain sluggish through the end of 2025.