Home prices post double-digit twelve-month rise

Home prices rose 10.3% in the twelve months to the end of October, while the CPI fell slightly in November.

Housing prices in Israel rose by 10.3% over the twelve months to the end of October, according to figures released by the Central Bureau of Statistics today. This is the biggest twelve-month rise since 2010. Prices in deals in September-October were 0.9% higher than in August-September this year. One likely cause of the continued rise in prices is the hike in purchase tax, which led to surge in demand as buyers rushed to beat the tax rise.

The Consumer Price Index (CPI) fell by 0.1% in November. The consensus analysts' estimate published by Bloomberg was that the index would be unchanged. The rate of inflation in the twelve months to the end of November was 2.4%.

There were prominent falls in November in the fresh produce item, which fell 5.8%, the culture and entertainment item, which fell 1.6%, and clothing and footwear, which fell 0.8%. Furniture and household equipment prices rose 2.4% last month.