Better interest rate terms have been available on the mortgage lending market after the Central Bank’s decision to cut policy rates last month. This is stated in a new report by Húsnæðis- og mannvirkjastofnun (Housing and Construction Authority).
Developers have offered a new financing option in response to weak sales of new homes. According to the authors of the report, the arrangement is demand-stimulating, but has so far seen little take-up.
The report also states that the housing market cooled in November but appears to have regained momentum in December. It nevertheless remains a buyers’ market.
The number of new homes continues to increase, but sales remain sluggish. The majority of new homes are priced at ISK 65.000.000 or more, with only 5.5% of new homes available for a lower price.
There is less price pressure in the rental market than in recent years. Market rents have followed inflation, while other rents have declined in real terms.
Rents are highest in Garðabær, averaging over ISK 300.000 per month.
Source: Ruv.is
