The appreciation of the shekel against the dollar depressed prices for second-hand homes by an average of 10.4% to NIS 710,300 in the first quarter of 2006 from NIS 793,800 in the corresponding quarter of 2006, the Central Bureau of Statistics reports.
The fall in second-hand home prices has benefited wealthier homebuyers because prices for more spacious and expensive homes have fallen more than prices for smaller apartments. The average price for a 4.5-5-room apartment fell by 12.5% to NIS 1.09 million in the first quarter from NIS 1.25 million in the corresponding quarter. The average price for a 1.5-2-room apartment fell by 7.1% to NIS 466,600 in the first quarter from NIS 502.500 in the corresponding quarter.
The average price for an apartment in Tel Aviv fell by 11.3% to NIS 974,400 in the first quarter from NIS 1.1 million in the corresponding quarter. The average price for an apartment in Jerusalem fell 5.5% and in Haifa by 12.2%.
The average price for a home in the Dan region fell by 7.2% to NIS 676,600 in the first quarter. The average price for a 1.5-2-room apartment fell by 3.5% to NIS 431,000, the average price for a 2.5-3-room apartment fell by 3.3% to NIS 557,900, and the average price for a 4.5-5-room apartment fell by 11.8% to NIS 1.04 million.
The average price for a home in the north fell by 11% to NIS 398,100 in the first quarter from NIS 447,400 in the corresponding quarter. The average price for a home in the south fell by 12.3% to NIS 471,700 in the first quarter.
Differences in home prices between central Israel and outlying areas remains very wide. A home in Tel Aviv costs 2.44 more than an equivalent home in an outlying area.
Published by Globes [online], Israel business news - www.globes.co.il - on May 17, 2007
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