The turnover in the Icelandic real estate market last week was only one third of the turnover in the week of November 30 to December 6, 2007, ISK 2.4 billion (USD 37 million, EUR 25 million) and ISK 7 billion (USD 108 million, EUR 73 million) respectively.
In late January last year, the real estate turnover was ISK 4.8 billion (USD 74 million, EUR 50 million) in one week, Fréttabladid reports.
“The turnover is certainly lower than it has been for the past few months because the real estate business has been very lively until now. This time of year is usually rather slow in this business,” said Grétar Jónasson, managing director of the Association of Real Estate Agents in Iceland.
“Also, considering lending terms and the situation on the stock market it is not unnatural for the real estate market to cool down suddenly,” Jónasson added.
Since loan institutions have raised the interest rates on mortgages in ISK—now set at 6.35 percent on average—fewer can qualify for loans, resulting in fewer being able to buy housing.
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