The turnover of notarized bills of sale for real estate in the capital area area were 82.7% higher in June this year than in June 2015 and the turnover is up 105.3% reports local news site visir.is.
The average property price was 42 million ISK (344.000 USD, 310.000 EUR) in June compared to 37.4 million ISK (306.500 USD, 276.000 EUR) last year. That is a price increase of 12.3% year from year.
Property prices in central Reykjavík have increased the most due to limited supply and high demand.
In October 2015 a forecast by Íslandsbanki bank predicted real estate prices to increase by 25 percent between from 2016 to 2017. If the bank’s forecast is accurate, property prices in the capital are set to become higher than they were during the 2005 housing bubble when property prices reached a historical high.
The conditions on the market are however significantly different as buyers are not financing their homes now with 100% mortgage loans, as many did during the boom between 2004 and 2008.
The housing prices are responding to the strength of the economy thanks to strong exports and booming tourism. Economic growth in 2016 is expected to be a robust 4.2% and unemployment and inflation to remain below target.
The turnover of notarized bills of sale for real estate in the capital area area were 82.7% higher in June this year than in June 2015 and the turnover is up 105.3% reports local news site visir.is.
The average property price was 42 million ISK (344.000 USD, 310.000 EUR) in June compared to 37.4 million ISK (306.500 USD, 276.000 EUR) last year. That is a price increase of 12.3% year from year.
Property prices in central Reykjavík have increased the most due to limited supply and high demand.
In October 2015 a forecast by Íslandsbanki bank predicted real estate prices to increase by 25 percent between from 2016 to 2017. If the bank’s forecast is accurate, property prices in the capital are set to become higher than they were during the 2005 housing bubble when property prices reached a historical high.
The conditions on the market are however significantly different as buyers are not financing their homes now with 100% mortgage loans, as many did during the boom between 2004 and 2008.
The housing prices are responding to the strength of the economy thanks to strong exports and booming tourism. Economic growth in 2016 is expected to be a robust 4.2% and unemployment and inflation to remain below target.
