House price spiral is slowing

House prices in the third quarter (Q3) of this year are lower than in Q2 but still higher than in 2021.

This is according to an analysis conducted by real estate agent Betri heim.

“House sales tend to fluctuate from one quarter to the next, but the general trend indicates that the spiralling house prices seen in the past few years are starting to slow down,” says Betri heim CEO Kára á Dunga.

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The national average price of a home in Q3 2022 is DKK 2.6 million. This is almost DKK 200,000 less than in Q2 but 13 percent up on Q3 2021.

In Tórshavn, the average price of a home currently stands at DKK 4.1 million, compared to DKK 3.7 million this time a year ago.

Klaksvík’s year-to-date average home price is DKK 2.9 million, compared to DKK 2.2 million last year. The Q3 average price of a home in Klaksvík was DKK 2.7 million.

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In Eysturoy, the average year-to-date price DKK 2.1 million, compared to DKK 1.9 million last year. Eysturoy’s Q3 average home sales price was DKK 1.8 million, according to Betri heim’s analysis.

“Demand for properties remains high, but people are more cautious now. This is reflected not only in the sales figures but also in the time it takes to sell properties,” says Dunga.

“The Q4 figures will give us a clearer idea of the degree to which the recent consumer price and interest rate hikes have affected property prices.”

Read the Faroese version of this article here.

More Faroese News in English.