Housing prices defy interest rates in Havn, Iceland, showing significant increases

Despite rising loan interest rates in 2022 and 2023, average housing prices today are higher than in 2022, according to Betri heim.

Typically, housing prices decline when interest rates rise and people have less disposable income. However, even with the increase in loan interest rates, prices continue to climb.

This suggests that the demand for housing remains significantly greater than the supply, states Betri heim.

In the first half of this year, the average price for a single-family home in the capital, Havn, stood at four million krónur—an increase of six percent compared to last year.

Meanwhile, the average price for a single-family home elsewhere in the country was 2.1 million krónur, reflecting a five percent rise from the previous year.