Home prices in Israel rose slightly in February and March 2026, increasing by 0.3 percent compared to the previous two-month period, according to a new report released by the country’s Central Bureau of Statistics.

Despite the modest increase, prices were still down 1.2% 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 rise comes despite 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 a 30-year high at NIS 2.86, is also affecting demand from overseas buyers.

During the two-month period, prices rose by 1.2% in Tel Aviv, 0.4% in Jerusalem and 0.1% in Haifa. Prices declined by 0.2% in the central district and 0.1% in the north, while prices in the south remained unchanged.

Compared with the same period last year, prices climbed 4.2% in Jerusalem, 1.6% in the north and 0.7% in Haifa. Prices fell by 3.5% in Tel Aviv and 2.9% in the central district, while remaining flat in the south.

New home prices rose 0.4% during the two-month period, but were down 3.8% year-on-year.

The average nationwide apartment price in the first quarter of 2026 stood at NIS 2.33 million ($816,500), down 1.6% from the previous quarter. Tel Aviv remained the country’s most expensive district, with an average home price of NIS 3.4 million ($1.2 million), while the north was the cheapest at NIS 1.5 million ($525,600).

According to Finance Ministry data for March, a total of 7,395 apartments were sold, an 8% decline compared to March 2025. Transactions rose 3% compared to the previous month.

The decline in transactions was relatively moderate considering Israel’s war with Iran during the month, the ministry noted, although activity remained historically low.

New apartment sales, including subsidized units, totaled 2,789 units in March, marking an 11% drop compared to March 2025. A total of 4,606 secondhand apartments were sold, a 6% decline compared to last........

© The Times of Israel