Home prices in Israel rose by 0.1% in May and June 2026 compared to the previous two-month period, according to the most recent report released by the Central Bureau of Statistics.

Market prices have fallen an average of 1.5% compared to the same period a year earlier, the CBS said. A month earlier, the market recorded its largest monthly decline in eight years, falling 1% in April and May 2026. Prices have declined in eight out of the last 12 months.

Israel’s housing market has slowed over the past year, partly 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 tamped down sales; the shekel’s strength against the dollar, currently at NIS 2.99, is also affecting demand from overseas buyers.

The Israeli currency is about 10% stronger than it was a year ago, and has fluctuated by more than 20% over the past 16 months, trading data shows.

During May and June, average prices rose by 1.8% in Jerusalem, 1.5% in Haifa, 0.9% in the north and 0.7% in the south. Average prices fell by 1% in the Central District and 0.7% in Tel Aviv.

Compared with the same period last year, prices have climbed 1.8% in Jerusalem, 1.6% in the north, and 0.1% in the south. Prices have fallen by 4.1% in the central district, 1.8% in Haifa, and 1.7% in Tel Aviv.

The average sales price of a home in Tel Aviv is NIS 3.58 million ($1.197 million), the CBS said. The average home price is NIS 2.91 million ($973,244) in Jerusalem, NIS 2.73 million ($913,043) in the Central District, NIS 1.93 million ($645,485) in Haifa, NIS 1.66 million ($555,184) in the south, and NIS 1.52 million ($508,361) in the north.

According to Finance Ministry data for June, a total of 8,757 apartments were sold, a 50% increase compared to June 2025, when Israel waged war against Iran. Transactions rose 6% compared to the previous month.

New apartment sales, including subsidized units, totaled 3,593 in June, up 84% from June 2025. A total of 5,164 secondhand apartments were sold, a 33% increase compared to last year.

Investor activity increased significantly compared to the low level of last year,........

© The Times of Israel