The embattled Icelandic property market appears to be making a comeback after it nearly ground to a complete halt during the banking crisis.
In the Reykjavik area there were 428 confirmed property purchase contracts signed and validated in August with a value of 76 700 000 euro and an average cost per transaction of 179 200 euro.
The market analysis department at the National Registry of Iceland says that the number of purchase contracts was double that seen in August 2010 — and also twice the value.
At the same time elsewhere in the country, there were 35 property purchase contracts signed in Akureyri, 13 in Reykjanesbaer, 12 in Arborg and nine certified purchases of real estate in Akranes.
Estate agents were hit quickly by the collapse in the banking sector and the credit crunch in general. There were house repossessions and almost everybody put their plans to buy new or bigger houses on hold. A recovery in the property market is seen as a positive step for the entire national economy.
Source: http://www.icenews.is/index.php/2011/09/08/recovery-in-icelandic-housing-market/