The first quarter of 2025 and April data indicate that the market has crashed.

A professional and focused analysis of the residential real estate industry review – April 2025 , as it appeared in the report of the Chief Economist's Department at the Ministry of Finance:

️ Key Trends: Free Real Estate Market in a Crash

1. Collapse in free market transactions :
   • Only 5,433 transactions in the free market – a 20% decrease compared to April 2024.
   • Contractor sales in the free market fell to 1,543 apartments – a sharp decline of 43% year-on-year (!).
   • The rate of new apartments sold "on paper" fell to 64% - a monthly decrease of 3 percentage points and an indication of growing panic among buyers.
2. Effect of Bank of Israel restrictions :
   • The decrease is coordinated with the entry into force of the Bank of Israel restrictions at the end of March 2025 (limiting the rate of deferred payment and “balloon” loans).
   • In areas such as Netanya, Be'er Sheva, and Tel Aviv, there was a sharp drop in the frequency of transactions with financing benefits – a decrease of up to 30 percentage points (!).
3. A puzzling gap between the decline in sales and cash flow :
   • Despite the collapse in sales, contractors' cash flow stood at 6.3 billion NIS , 37% higher than April last year (!).
   • The findings suggest early payments by buyers or manipulations that smell like an attempt at a positive "accounting presentation" just before the quarterly reports.