Houses selling at fastest rate on record

10.09.2020 - 14:24
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 Mynd: RÚV - Freyr Arnarson - RÚV
The number of advertised properties for sale has gone down by 18 percent since late June and the number of notarised purchase contracts in July was one fifth higher than a year earlier, according to the latest monthly data from the national housing and construction agency.

The report states that the property market in Iceland is still very active. The average time taken to sell each property has shortened rapidly, while prices have also increased between months—both in the capital and elsewhere in the country.

In the capital region this July it took an average of 43 days to sell properties in apartment blocks and 50 days to sell detached houses. The average time taken to sell homes has not been shorter since the data started being recorded at the start of 2013. 

The main banks issued basic non-inflation-indexed mortgages with variable interest up to a value of 45 billion krónur in July. Never before had so many such loans been issued in one month. Almost all mortgages issued in July were non-inflation-indexed with variable interest. 

The agency’s report says that if the current national inflation forecast remains unchanged, non-inflation-indexed mortgages are the better value option. It is nevertheless important for homeowners to remember that the monthly repayments on non-indexed loans may increase over the coming years if interest rates go up again. 

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Alexander Elliott
Project manager
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