Relative Housing Prices in Iceland

Obviously the price of housing in Iceland has rocketed up in the past decade, but that does not necessarily say much in an inflation-stricken economy like ours. Here’s a chart where the housing prices have been corrected with respect to Inflation. You can clearly see the boom years 2005-2008, and the fall afterwards. It is however interesting to see how that it took the prices almost 2 years to fell to their old levels. In fact this effect was largely due inflation, not decrease in actual price tags on houses. Perhaps the idea of “not losing too much on your investment” did have some effect. The data comes from hagstofa.is and skra.is.