Housing Market Cools Without a Sharp Correction Iceland’s housing market continued to cool gradually in May 2026. The national housing price index declined 0.44% month-on-month to 113.3 points, although prices remained 2.16% higher year-on-year. Affordability is improving as wages continue to rise faster than housing prices. The accompanying market data shows annual wage growth of 6.4%, compared with 2.2% growth in…