An annual appraisal of Israel's real estate has shown that in 26 of the 31 cities surveyed, homes and properties in Israel prices have faced an increase in price. As of now, the best city to sell and buy a home is Herzliya where the supply is very low compared to the demand.

According to the survey, homes in Israel prices last year rose in 26 of the 31 cities. Only five cities declined. House prices increased in 2012 by an average of 4% in most cities compared to 2011. Haifa prices increased by 12%, 15% in Carmiel, Tel Aviv at 9%, while in Ramat Hasharon and Herzliya by 7%. Five cities where prices declined are Ness Ziona, Raanana, Kiryat Ata, Ako and Kfar Saba.

Unlike the increase in prices of Israel's homes, rental rates have remained fairly consistent. Tel Aviv rental prices rose by 240 per month – an increase of 4%. Jerusalem an average apartment pays 5715 NIS – an increase of NIS 222 monthly fee. Haifa, the average price is 2779 per month – only 50 Shekels more than at the end of 2011. Beer Sheva tenants pay at least  2579 shekels a month for rent.

Homes in Israel market attractiveness does not necessarily incompatible attractive for the rental market. For example, Givatayim, very attractive for sale, not so attractive for rent – meaning there is a high supply of homes in Israel for rent in relation to the demand. Jerusalem opposite trend: it is at the bottom of the list of cities more attractive for sale, but is ranked fourth in the list of the rental. Ashdod trend is similar to that of Jerusalem.

According to the Ministry of Housing, it is considerably more affordable to buy an apartment as only 128 salaries are required.

This is still a much higher number than the years before the great wave of increases in homes in Israel prices, and compared with other Western countries. The average price of a new apartment is 1.42 million. The main concern: the sharp decline in housing starts.

Stability in homes in Israel prices in recent months reflects a balance between supply and demand, “said the report by the Ministry of Housing.” This stability is due to 3 factors: the volume of construction starts about 40 thousand homes in Israel a year like the annual increase in households; supply of new homes for sale of about 20 thousand units, and apartments under construction totaling approximately 80 thousand units (double the annual volume of construction starts construction duration reflects an average of two years). Lower figures indicate missing supply does not meet demand needs. ”

In the report refers the Ministry of Housing to the decline in housing starts that may create pressure on the supply side in the future: “The decline in homes in Israel starts is mainly due to a shortage of skilled labor and delay in obtaining permits and approvals. Contractors companies reported in recent months that these factors strict restrictions on the activities of the industry (over 30%). Some more limitations are lack of land (about 30%), and difficulties in obtaining credit (20%). The significance of Credit for construction and real estate reached in the first half of 2012 to approximately 19% compared with 17% for the years 2005-2008. “