According to Iceland State Radio, RÚV, real estate prices in Reykjavík have continued to rise, by 4 per cent from April to May and by 40 per cent over the past 12 months.
Citing an editorial in the most recent issue of the British weekly the Economist, RÚV wonders if Icelandic house prices will come down as the Economist predicts will happen in many other parts of the world. Two economists interviewed, Magnús Árni Skúlason and Guðmundur Ólafsson, consider it unlikely that house prices in Iceland will come crashing down any time soon.
