all the websites are naturally in Icelandic. This is one of the biggest ones:
http://fasteignir.visir.is/
keep in mind that places are counted by rooms here, not by bedrooms. So, a 2 room apartment is going to be one bedroom and a living room usually (kitchen and bath aren't counted in this number usually).
a decent place in a multi-family building is around 20 million these days based on what I know from friends who're buying or selling right now. This is in the downtownish area (postcodes 101 and 107).
