Since this spring I have been trying to get my head around understanding how the Central Bank figures that a third of homeowners are now experiencing negative home-equity.

Home equity is the cash you’d end up with from selling your home and paying up your home loans.

So the bank is probably assuming a market price based on either its own predictions or value of the deals being made.

Since October there has hardly been any real movement in the property market and for months we’ve heard that most of the little business there is takes place where properties are being traded between buyers.

So as there is no property market to speak of  in Iceland wouldn’t it be more correct to claim that almost everyone who owes something in their home has a negative home-equity?

Related posts:

1. Iceland In Debt
2. A Fair Solution Or Not?
3. A Storm Is Brewing Over The Ruins – Icelandic Housing Crisis Explained
4. Discussion On Household Debt Held Hostage By Progressive Party
5. The unsupervised free market keeps rolling