Home prices in Israel rose sharply in November and December, continuing an upward trend after eight consecutive months of decline earlier in the year, according to the most recent information available from the Central Bureau of Statistics.

The housing price index increased by 0.8% in December compared to the previous month, the second month of gains after Israel reached a ceasefire agreement with Hamas in October. Over the past 12 months, home prices have risen by a total of 0.4%.

The housing market had slowed throughout most of 2025, partially in reaction to the multifront war Israel has been engaged in since Hamas invaded southern Israel on October 7, 2023. High interest rates, a record supply of unsold new housing, and high prices have also helped to tamp down sales. The shekel’s strength against the dollar, currently near a four-year high at NIS 3.12, is also affecting demand from overseas buyers.

Tel Aviv led the regional increases with a 2% jump in prices during the period. Other regions also saw gains, including the southern district (1%), Jerusalem (0.4%), the northern district (0.4%), and Haifa (0.3%). Prices in the central region remained unchanged.

Over the past 12 months, prices have risen by 9.6% in Jerusalem, 4.8% in the north, 1.4% in the south, and 0.7% in Haifa. Prices declined by 3.1% in the central district and 1.9% in Tel Aviv.

The national average price for a home in the fourth quarter of 2025 reached NIS 2,362,900 (approximately $656,000), representing a 1.8% increase from the third quarter. Tel Aviv remains the most expensive market, with an average dwelling price of NIS 3,360,600 ($1.07 million).

A record 86,090 new homes remained unsold at the end of December 2025, CBS noted in a separate report.

According to Finance Ministry data for December, 8,526 transactions were recorded during the month, a 24% drop compared to the same month the previous year. Volume rose 16% from November, a common trend as developers push for sales before closing annual financial reports.

New home sales in December reached 3,496 units, a 41% drop from December 2024. Economists noted that buyers rushed to close deals........

© The Times of Israel