Holmstedt was born in the village of Granvin on the Hardanger fjord, in the country of Hordaland in Norway.
His talent was evident by the age of 1o, but it was only after years in the service in the army that Holmstedt received artistic education. He lived and worked for most of his life in Berlin-Wilmdersdorf and spent his summers in Balestrand, as is reflected in his work.