House prices are expected to increase by 25 percent between now and 2017, according to new data from Íslandsbanki bank. Should the bank’s forecast be actualised, property prices are set to become higher than they were during the 2005 housing bubble when property prices reached a historical high.
According to Fréttablaðið newspaper, property prices in central Reykjavík have increased the most due to limited supply and high demand.
Read more: Real Estate prices on the rise in Iceland
Is this the beginning of a new property bubble, many ask? Well, according to Ingólfur Bender, Íslandsbanki’s head analyst, there is a need to keep a close eye on housing prices in certain areas, but he does not fear there is a new property bubble forming.
“Buyers are not financing their homes with 100% mortage loans, like many did during the boom. And housing prices are responding to the strenght of the economy, another sign of a normal housing market,” Ingólfur explains.
House prices are expected to increase by 25 percent between now and 2017, according to new data from Íslandsbanki bank. Should the bank’s forecast be actualised, property prices are set to become higher than they were during the 2005 housing bubble when property prices reached a historical high.
According to Fréttablaðið newspaper, property prices in central Reykjavík have increased the most due to limited supply and high demand.
Read more: Real Estate prices on the rise in Iceland
Is this the beginning of a new property bubble, many ask? Well, according to Ingólfur Bender, Íslandsbanki’s head analyst, there is a need to keep a close eye on housing prices in certain areas, but he does not fear there is a new property bubble forming.
“Buyers are not financing their homes with 100% mortage loans, like many did during the boom. And housing prices are responding to the strenght of the economy, another sign of a normal housing market,” Ingólfur explains.
