Home prices in Israel declined in March and April 2026, falling by 0.3 percent compared to the previous two-month period, according to the most recent report released by the country’s Central Bureau of Statistics.

Prices have fallen 1.3% compared to the same period a year earlier, marking one of the few sustained annual declines in the past decade, CBS said. Prices have declined in nine out of the last 12 months.

The decline follows market uncertainties regarding Israel’s war with Iran, which began on February 28.

Israel’s housing market has slowed over the past year, 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 at circa NIS 3.00, is also affecting demand from overseas buyers.

The Bank of Israel reduced the interest rate to 3.5% on Monday, its third rate cut this year. The decision was made in light of the US deal with Iran, eased global geopolitical tensions, and a stable inflation environment, it said.

During the two-month period, prices rose by 0.7% in Tel Aviv and 0.2 in the central district. Prices fell by 2% in Jerusalem, 1.9% in Haifa, 0.9% in the south, and 0.2% in the north, CBS said.

Compared with the same period last year, prices climbed 1.7% in Jerusalem and 2.5% in the north. Prices fell by 3.1% in the central district, 1.9% in Tel Aviv, 1.1% in Haifa, and 1.1% in the south.

According to Finance Ministry data for April, a total of 5,081 apartments were sold, a 19% decline compared to April 2025. Transactions dropped 31% compared to the previous month.

The number of transactions in April 2026 was exceptionally low by historical standards, the ministry noted. During March, the effect of the war with Iran on the market was somewhat more moderate.

New apartment sales, including subsidized units, totaled 2,107 units in April, marking an 11% drop compared to April 2025. A total of 2,974 secondhand apartments were sold, a 24% decline compared to last year.

Investor activity decreased significantly during the month, with 751 apartments purchased by investors, a 12% decline compared to April 2025 and a sharp 43% drop from the previous month. At the same time, investors sold 922 apartments, representing a 28% decline compared to both the same period last year and the previous month.

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