The real estate boom in Belo Horizonte seems to be over. The number of new apartments sold in the capital fell 30.5% between January and July this year, compared to the same period in 2010. But potential buyers have no reason to celebrate, yet. The drop in sales was unaccompanied by any drop in prices. The average value of units sold rose 0.85% in July, high above the inflation recorded in the period, 0.10%.
Our take on this piece of news: in any bubble, first thing to happen is a drop in sales (which is already happening)…. next thing, are price cuts. Stay tuned.
Source: Estado de Minas