Houses Are A Better Investment Than Stocks, Says Housing Authority

The Icelandic Housing and Construction Authority (HMS) claims that housing investment offers more gains and fewer risks than purchasing stocks. This is a sign of an abnormal housing market in Iceland, the institution commented in its recent monthly report.

In the last 10 years, housing costs have risen more than the domestic share prices, while the average price flux of housing has decreased compared to the average cost of stocks. Since 2015, the housing price index has increased by 166%, in contrast to the OMX 10 stock market index increased by 100%.

According to HMS’ report, more gains are generally expected in riskier investments, which is not the case in Iceland. This development is a sign of an abnormal housing market.

Furthermore, HMS points out that the real estate market has been active in recent months, with more properties being listed and an increased number of purchasing agreements. New constructions have performed worse than other types of apartments.