01-05-2012 | More optimism among home buyers
According to sales figures from the real estate market, there is more optimism among Faroese home buyers now than ever before since the financial crisis hit in the autumn of 2008. One of the largest real estate brokers in the Faroe Islands increased its sales by 70 per cent compared to last year.
Real estate prices are under pressure, but sales are rising steadily. In the first three months of this year, one of the largest real estate brokers in the country, Skyn, increased its sales by 70 per cent. This is a larger increase than the company experienced in the whole of 2009.
'The prices are lower than before, and this has got the sales going. We can only guess the reasons, but the fact that some people have suddenly got a bit more money in their hands due to tax cuts may have opened up mortgage opportunities for them that they did not have before,' says Jón Simonsen, manager of Skyn, in an interview with the newspaper Dimmalætting.
The other large real estate broker, Inni, has also seen increases in its real property sales.
'The sale of apartments and small properties is going well', says Kára á Dunga, manager of Inni.
The sale of homes in the Faroe Islands reached a peak in 2007, but when the financial crisis hit the following year, it became more difficult to get a mortgage and sales halted. It looks like this slump has now been turned around again.
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