According to Fundacao iPead (via EM), housing sales in the city of Belo Horizonte (Brazil’s third largest city) fell 41% in 2011 compared to last year.
The total of new homes sold this year was 2,983 units, compared to 5,094 in 2010. The number of new units launched in the market dropped about 42% over last year.
Industry leaders try to explain it
The director of the construction industry organization Sinduscon, Andre Campos, tries to explain it: “This downturn is not a reflection of economic slowdown or change in real estate fundamentals. We remain very optimistic. This happened because of delays in the “Minha Casa Minha Vida” (low-income housing) program.”
Hoping that Consul Partimonial is right
Our favorite Brazilian real estate forecasters, Forbes magazine and Consul Patrimonial, have recently said that “the housing bubble in Brazil has legs until 2017” (actually, it was Mr. Marcus Vinicius de Oliveira from Consul Patrimonial who was quoted in the text). At this point, the homeowner in Brazil is desperately hoping that they are right, because all signs hint that their prediction is way off.