In July 2026, an increase in new housing sales in Israel was recorded, mainly due to government subsidy programs that saved the developers. New housing sales rose by 9% compared to July of last year, but when excluding subsidized housing sales, a 5% decrease in sales in the free market was noted. A total of 2,968 new homes were sold in July, of which 1,110 were under the subsidy program. In the free market, the situation is tougher, with a 9% drop in the number of transactions compared to July of last year. The second-hand market is also experiencing declines, especially in the Tel Aviv area, where a 36% drop in transactions was recorded. Additionally, the inventory of new homes held by developers stands at about 85,000 homes, indicating an oversupply. Developers are starting to offer financing incentives again to encourage purchases, but the rate of incentives is still low compared to last year. The data indicates a persistent weakness in the real estate market, especially in the southern part of the country.