The Ministry of Housing announced on Wednesday, 4 Tammuz 5773 that the situation for homebuyers is worsening in the face of rising prices. This distressing fact is true for both purchasers of new and used apartments.
The ministry report states the number of average salaries to buy an average home rose to 135 salaries in the first quarter of 2013 from 131 salaries in 2011-12, 129 salaries in 2010, 116 salaries in 2009, and 103 salaries in 2008.
A breakdown of homes by new and second-hand and by the number of rooms found that 181 average salaries are needed to buy a second-hand five-room apartment – more than 15 years of work – and 179 salaries to buy a new five-room apartment.
(When the number of rooms is advertised in Israel, it refers to bedrooms plus the living room. Hence, it represents one less bedroom. Therefore, a 5 room apartment includes 4 bedrooms and a living room, not 5 bedrooms).
It takes 150 average salaries to buy an average new four-room apartment (12.5 years of work) and 128 salaries to buy an average second-hand four-room apartment (10.6 years of work). It takes 7.5 years of work to buy an average second-hand three-room apartment, and 90 average salaries to buy a new three-room apartment.
The report cites that the average monthly mortgage payment represents 30% of one’s disposable income. That figure is even higher among 41% of mortgage payers.
Persons who purchased an apartment costing less than 1.2 million NIS are more in debt, with 54% having a loan-to-value ratio of over 60%, compared with fewer than a third of mortgage holders of apartments that cost more than 1.2 million NIS.
The Housing Ministry reports average rent nationwide in Israel is 3,411 NIS a month. The Tel Aviv average is 5,059 NIS, 54% above the national average, and the average rent in the Haifa suburbs in the Krayot is 2,141 NIS, 35% below the national average.
(YWN – Israel Desk, Jerusalem)