New house prices in Israel have been declining since the start of the year and continue to go down, according to the Ministry of Finance. Prices dropped by an average of 0.9% in June. Home sales also rose by 8% that month, a slower pace than the 35% surge in May. However, sales were down 6% from the same time last year.
Israel's central bank raised interest rates from 1.5% to 1.75% in July. Rents are expected to increase because of the higher rates and more stringent mortgage restrictions.