The number of real estate transactions dropped by 40% in 2022, causing a decrease in the number of people taking their brokerage exams and an increase in brokers leaving the profession due to lack of work.

The Israeli real estate market has been declining since October, with an average of nearly 40% decrease in the number of transactions per month. This is due to rising interest rates and mortgage costs, as well as market instability related to recent judicial reform.

According to real estate professionals, prices have not yet dropped, but the market is limited as potential buyers are either unable to afford high monthly payments or hesitant to invest in an uncertain market. The only buyers are those who need to sell or buy for personal reasons.

The real estate market has been affected by the COVID-19 crisis, resulting in an 80% drop in transactions since the peak. Real estate agents must be experienced to survive the impact of this crisis on their profession. Sellers must be willing to negotiate prices to close a sale. Official data shows a link between the number of real estate agents and the state of the market. When the market is up, there are more new real estate agents, while in times of crisis, many leave the profession.

In 2015, there was a peak in the number of annual real estate transactions, while in 2016, 2,200 new brokers joined the market. By the end of 2020, prices had reached a peak in response to a record 150,000 transactions in 2021. This led to a 26% increase in the number of brokers until the end of 2022. However, over the past ten years, there have been two decreases in the number of active brokers, the first in 2014 due to the expected implementation of a VAT program, and the second in 2020 due to COVID restrictions. Currently, the number of new brokers is decreasing, which could indicate a trend to avoid the real estate market.