Nearly 74% of apartments in the capital area were sold in December at prices lower than the listed asking price, compared with about 67% in December 2024.
This is stated in the monthly report from the Housing and Construction Authority (HMS).
“The share of newly built homes selling below the advertised asking price has risen considerably in recent months and has not been higher in the area since mid-2023. At that time, housing price increases had slowed significantly alongside rising interest rates, before demand picked up following the volcanic eruptions in Grindavík,” the report states.
It also notes that more than half of the new homes sold in the capital area in December went for less than the advertised asking price.
A total of 1,080 purchase agreements for residential housing were registered in December, including at least 319 first-time home purchases. This represents an increase of nearly 38% month-to-month, although the number of registered agreements in November was unusually low due to the impact of the interest rate court ruling on the lending market in mid-October.
“Housing prices rose by 2.36% in nominal terms between January 2025 and January 2026, while the annual increase was 2.11% in December,” the report says.
However, inflation rose significantly between months in January, meaning real housing prices continued to decline. Real prices have now fallen by 2.67% over the past 12 months, compared with a 2.27% year-over-year decline recorded in December.
Source: icelandmonitor.mbl.is
