Israel's Housing Market: November Sales Surge Amid Ongoing Decline

In November 2025, Israel's housing market experienced a notable rebound, with home sales reaching 7,780 units, marking a 60 percent increase from October, which was one of the weakest months in recent years. This figure also represents a 3.2 percent rise compared to November 2024. Despite this surge, the broader trend indicates a continued slowdown in residential real estate activity over a longer period.

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Of the homes sold in November, 37.7 percent, or 2,930 units, were newly built apartments, with approximately one-third sold through government-subsidized affordable housing programs. The remaining 62.3 percent, equating to about 4,850 homes, were secondhand properties. An analysis of the three-month period from September to November 2025 revealed that approximately 19,930 homes were sold, representing an 11.9 percent decline compared to the previous three-month period from June to August. However, after adjusting for seasonal factors, transaction volume showed a modest increase of 3.5 percent.

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The data indicates a complex landscape for new home sales. Between September and November 2025, newly built homes accounted for 38.3 percent of total transactions, totaling around 7,640 units, but sales of new homes fell by 7.5 percent compared to the previous three-month period. Year-over-year comparisons show a significant decline in new home sales, down 16.6 percent in raw data and 14.7 percent after seasonal adjustments. Conversely, secondhand homes constituted 61.7 percent of total sales during the same period, with a 14.5 percent drop in sales compared to the previous three months.

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The central and southern regions of Israel accounted for the largest share of home sales, with 24.5 percent and 20.4 percent of all transactions, respectively. Notably, new home sales increased by 30 percent in the northern region and by 17.6 percent in the Tel Aviv region. However, declines were observed in other areas, particularly in the southern region, where new home sales fell by 26.8 percent. In the secondhand market, Jerusalem and the West Bank experienced the steepest declines, with sales dropping by 21.6 percent.

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Despite the uptick in November, officials caution against interpreting this as a definitive turnaround. The number of new homes available on the market at the end of November stood at approximately 83,630 units, indicating a supply period of 30.1 months at the current sales pace. The volatility in sales trends suggests that it is premature to ascertain a clear direction for the housing market.

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While November's sales figures show a temporary increase, the overall trend remains concerning, with long-term data indicating a decline in both new and secondhand home sales. The Central Bureau of Statistics has noted that it is too early to determine if the recent uptick signifies a sustained recovery.

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“Although November recorded a modest uptick, officials said it does not yet indicate a sustained turnaround.” — Central Bureau of Statistics Official

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