Local Update:
The market has shown signs of increased activity over the past month as people tried to close deals ready for summer move-in; albeit still a bit slower than normal. That said, the sales season is almost ending as there is usually a bit of a lull in July/August with new places coming on the market in the fall (most of which will have a summer 2026 key date).
The most active neighborhood in the market right now is Moreshet, Modiin’s newest area. Much of Moreshet was originally sold through the Machir Lemishtaken program—a government lottery that offered subsidized pricing to homebuyers. These buyers were required to hold onto their properties for a set number of years to avoid significant taxes upon resale. That holding period is now coming to an end, resulting in a wave of new listings in Moreshet, with more expected in the coming year. As a result, Moreshet currently offers some of the most competitive prices in the city.
Renting in Modiin has become significantly more challenging this year compared to previous years. One major factor is the sale of many rental properties in Moreshet, reducing the number of available units. Additionally, there's been less movement in the housing market so far in 2025, meaning many tenants who might have moved are choosing to renew their leases, further limiting supply.
At the same time, demand is growing—driven by continued aliyah, young families relocating from Tel Aviv and Jerusalem, and young couples moving out of their parents’ homes. The combination of limited supply and increased demand is pushing rental prices even higher.
Some national economic and real estate news:
When purchasing a home as your primary residence, you're eligible for a reduced purchase tax rate. Previously, you had 18 months to sell your current home after buying a new one in order to keep this benefit—otherwise, you'd be taxed at the higher rate for second homes (8%). Under new legislation, this window has been extended to 24 months, giving new homebuyers more time and flexibility.
The most recent price index rose by 1.1% in April—significantly higher than the projected 0.6% increase. This unexpectedly high figure suggests that interest rates are unlikely to come down in the coming months.
The U.S. dollar has also been trending downward, with the exchange rate recently dipping below 3.5 shekels—currently standing at 3.46 (before today's news about potential attack in Iran). When the war ends or if there is a significant shift in the government, we could see a further notable decline in the dollar’s value against the shekel.
Compiled by Rebecca Franks (058.771.1523), HaBayit Shelanu based upon first-hand knowledge and reports published in Israeli and Anglo press including - Globes, Calcalist, Ynet, Haaretz, Jerusalem Post, Modiin News.