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Actual property builders are at the moment alarmed by a brand new curve that has appeared on their graphs – the connection between the variety of flats nonetheless remaining to be bought on the finish of a selected month and the variety of flats bought in that month. The curve strongly illustrates the depth of the disaster that the actual property market is at the moment going via, because it begins to resemble a market in recession.
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The curve is within the form of a u and will be clearly seen on graphs printed by the Central Bureau of Statistics exhibiting what number of months it takes for a brand new condo to be bought.
The bigger the variety of flats left on the market on the finish of the month and the smaller the variety of flats bought clearly signifies that builders are having problem promoting the flats they’ve in inventory.
In 2020, about 41,000 new flats have been bought, an analogous quantity to 2019, regardless of the Covid pandemic and repeated closures. The period of time it took to promote a brand new condo fell from a median of 19.6 months at first of 2019, to 10.9 months on the finish of 2020.
In 2021, new condo gross sales skyrocketed to 58,000, an all-time file. Consequently, the typical time it took to promote a brand new condo fell to only 9 months. Nevertheless, for the reason that finish of 2021, a number of months earlier than the rate of interest hikes started – gross sales of recent flats started to fall quickly, and it seems as if 39,500 new flats have been bought in 2022, down 30% from 2021.
Consequently, inside 18 months, the typical period of time it takes to promote a brand new condo has risen sharply from 10.9 months to 19 months, just like 2019 – thus finishing a u form curve on graphs between 2019 and 2022. This poses a dilemma for builders of methods to proceed promoting flats whereas chopping costs by the minimal. The latest Central Bureau of Statistics figures confirmed new condo costs falling by 2.4% inside one month.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on February 9, 2023.
© Copyright of Globes Writer Itonut (1983) Ltd., 2023.
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