As the clock ticks: New Treasury data reveals the pressure on home upgraders

New data from the Ministry of Finance reveals that in August 2026, nearly a third of home-upgrader sales in central Israel were from sellers who needed to meet the deadline to preserve their tax benefit. The pressure to sell on time may lead to price reductions and unusual payment terms, as illustrated by an example of an apartment sold on the last day for 2.7 million shekels, while its normal value was estimated at 2.9-3.1 million shekels.

New data from the Ministry of Finance, published by Galit Ben Naim, Deputy Chief Economist, reveals the pressure on home upgraders who are required to sell their previous apartment within a legally set timeframe to preserve their tax benefit. In August 2026, nearly a third of home-upgrader sales in the central region were from sellers who needed to meet the deadline, compared to about a quarter in July. In the Sharon and Shfela regions, the rate stood at about 15%-17%. Following Operation 'Roar of the Lion', a three-month extension was granted, or until August 31, 2026. In the center, 7% of waiting apartment sellers sold in the last days, and a fifth in the last three months. An example brought by Ben Naim illustrates how an apartment sold on the last day for 2.7 million shekels was valued by an artificial intelligence system at 2.9-3.1 million shekels in a normal market. The transaction terms were unusual, with a delivery date nearly a year later and the bulk of payment at delivery. However, about 70% of sellers still had at least a year to sell.