Globes, Eric Mirowski, 13.05.2020
The Corona epidemic also raises its price in the real estate market, and last March was considered one of the worst months in terms of home purchases in the last two decades. % Relative to March 2019.
In fact, when you deduct the months of Tishrei and Passover, which are always low, last March was considered the worst in terms of housing purchases since the social protest. However, it will dwindle compared to last month, April, in which, in addition to the closure imposed by the Corona, Passover also fell. This month, estimates in the Chief Economist Division are likely to set a historic low.
The decline in transactions was led by the new apartments, which fell by 40% compared to March last year. Excluding government subsidy sales (per-user price), total transactions in new and second-hand apartments in March stood at 5,900 apartments, a 27% decrease compared to March last year and the lowest level of free market sales (excluding Tishrei / Passover holidays) since May 2003, That stood in the shadow of the second intifada. It is unclear from the figures whether the recipients of the cost also canceled the plans they planned, or whether those deals were rejected as a result of the Corona, as 700 apartments purchased under the government plan account for less than half of the average monthly volume from the last year.
The chief economist's test shows that the proportion of apartments sold with an immediate delivery date has increased significantly, from a monthly level of less than 10% to less than 20% of all new homes purchased. "It is likely that this increase is explained at least in part by the buyers' desire to reduce the risk of purchasing the apartment," the review explains. On the other hand, the proportion of home buyers "on paper", taking advantage of the financial assumption inherent in these types of freelancing transactions, has fallen at a moderate rate.
The months of March-April, when the Corona epidemic was at its peak, were less suitable times for real estate investments. Indeed, investors purchased only 780 apartments in March, a 33% decrease compared to March last year and one of the lowest levels recorded since the early 2000s. These days, the high purchase tax on the assets they purchase ranges from 8% to 10% for most properties, which should be eliminated at the end of the year, unless the government decides to extend it, which at present is not likely, but many investors are now in the position. waiting.
By contrast, investors continue to sell properties and in March they sold about 1,500 apartments. This continues the phenomenon that began in mid-2016, where real estate investors sell assets at a much faster rate than their property purchases, which reduces their housing stock and rental offerings. In total, that stock has declined by 23,000 in the past four years.