Israeli housing market continues to slow as home sales decline
Despite weakening demand and mounting unsold inventory, property prices across Israel continue to defy expectations and remain high; 84,000 homes remain unsold across the country
Israel's real estate market is experiencing a significant slowdown, with new data from the Central Bureau of Statistics confirming a continued downturn in housing activity during the first quarter of 2026.
Between February and April, a total of 20,610 homes were sold nationwide, representing a 15.4% decline compared with the previous quarter. On an annual basis, home sales were down 11%.
The slowdown has been particularly evident in the second-hand housing market. Sales of existing homes dropped 17.7% from the previous quarter and fell 13% compared with the same period last year, reflecting growing caution among buyers amid high interest rates and ongoing economic uncertainty.
Despite the overall decline, some regions continue to account for a large share of market activity. The Central District represented 26% of all housing transactions over the three-month period, while the Southern District accounted for 21%.
In contrast, the Tel Aviv region experienced one of the sharpest declines in the country, with sales of both new and existing homes falling by approximately 27% during the quarter.
Meanwhile, the inventory of unsold homes continues to grow. By the end of April, developers were holding nearly 84,000 unsold housing units. Based on the current pace of sales, it would take an estimated 29.5 months to clear the existing inventory.
The Tel Aviv District accounted for almost 30% of all unsold homes, with approximately 25,300 units still available, followed by the Central District with around 20,600 units.
On a city level, Jerusalem recorded the highest number of unsold homes, with 10,133 units remaining on the market. Tel Aviv followed closely behind, with 9,960 homes still awaiting buyers.