Asking prices for homes again failed to show a clear direction in February 2012, but sellers have grasped the change in the environment, and online classified ad sites are no longer a platform for asking unrealistic prices.
February figures on the Homeless classified ads site were inconsistent across the regions examined. Asking prices for homes fell in only two areas for all types of apartments, compared with January: in Rehovot-Ness Ziona, prices for five-room apartments fell by 0.5%, prices for three-room apartments fell by 0.9%, and prices for four-room apartments fell by 1.3%; and in Beersheva, prices for small apartments fell by 3.5%, prices for four-room apartments fell by 2.1%, and prices for large apartments, which are uncommon in the city, fell by a moderate 0.6%.
Southern Israel has a large supply of unsold apartments. At the end of January, there were 4,058 unsold apartments in the district, while the rate of sales is 281 apartments a month.
In contrast, home prices in Israel's two biggest cities - Tel Aviv and Jerusalem - rose across the board, possibly indicating that buyers are seeking safe havens, while sellers know their bargaining power in the cities, and are in no hurry to compromise on their asking prices. Apartment prices rose by 0.6-1.8% in Tel Aviv, and they rose by 1.7-3.5% in Jerusalem.
Trends are also mixed in the rental market. Following the rise in rents in January, rents, especially for small apartments, mostly fell in February. The Northern District (Acre and the Galilee) was the only district where rents for three-room apartments rose slightly, by 0.7%. Rents were stable in Jerusalem and in Rehovot-Ness Ziona, and rents fells in the other regions.
In Tel Aviv, rents rose only for five-room apartments, to an average of NIS 9,580 per month in February.
Methodology
In contrast to other online classified ad sites, Homeless charges for all ads it airs, which makes sellers quote prices in accordance with their real expectations and avoids freeloaders.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012