General price level (nominal value minus inflation) of real estate in the capital area has increased significantly and is now on par with what it was in 2009, according to Viðskiptablaðið.
This increase especially affects those who bought a home before 2004 and after an all time low on the real estate market in 2010. According to Economics specialist, Ari Skúlason at Landsbanki, research has shown that detached homes in the GRA have increased in actual price by up to 35% since 2003.
When inflation is high it can surpass nominal value and in return reduce the general price level. At the moment, inflation is high and the general price level is therefore ascending.
General price level (nominal value minus inflation) of real estate in the capital area has increased significantly and is now on par with what it was in 2009, according to Viðskiptablaðið.
This increase especially affects those who bought a home before 2004 and after an all time low on the real estate market in 2010. According to Economics specialist, Ari Skúlason at Landsbanki, research has shown that detached homes in the GRA have increased in actual price by up to 35% since 2003.
When inflation is high it can surpass nominal value and in return reduce the general price level. At the moment, inflation is high and the general price level is therefore ascending.
