Faxastadir was the property of Stadur in Grunnavík. There were eight people living there in 1703, and seven in 1801. Hallgrímur Jónsson from Dynjandi got Faxastadir to cultivate in 1952, and had a field made there with a bulldozer bought in Ísafjördur. It wasn't possible to get a ditch cutter though, and he was only able to cultivate the dry land. In the book Vestfirzkar sagnir it says that Faxi, a sailor with the settler Hrafna-Flóki, was driven as a guilty man north to Grunnavík, where he settled at Faxastadir and made a yard in the field with huge boulders that no one should have been able to move. Much later another powerful man lived at Faxastadir, named Einar Bjarnason. He was harassed by the spirit of a dead man who was called Bjarni paufi. That man had competed with Einar in contests of strength while he was alive; not managing to defeat him then, he came back for revenge after his death. Pastor Einar Vernhardsson at Stadur was called to deal with the ghost; Faxastadir was long considered haunted after that. The last resident of Faxastadir was Jakob Jóhannsson, who bouht the farm for 250 krónur at an auction in 1946. He only lived there a few years, moving then to Oddsflöt and using the timber from the farm.