The incident took place before dawn in the village of Yasuf, southwest of Nablus city in the Israeli-occupied West Bank.
A field researcher with Yesh Din, an Israeli human rights group, said in a statement sent to China's Xinhua News that at least 13 cars were damaged.
Photos taken by the village council of Yasuf showed tires of car punctured and graffiti sprayed on residents' home.
A police statement said an investigation has been launched and police and military forces are going to the village to investigate the incident.
Israeli nationalist hardliners have been known to perpetrate such attacks against Palestinians and their property, including olive trees, mosques, churches, and cemeteries. Thousands of these attacks have been reported over the past years, mostly in the West Bank.
Two weeks ago, 170 vehicles were vandalized and hate graffiti was spray-painted on the walls of a mosque in the Arab town of Jish in northern Israel.
The West Bank is a land captured by Israel during the 1967 Middle East war. Israel has controlled it ever since, despite international criticism.