According to Secovi-SP (via Estadao), sales of new homes for October in the city of São Paulo fell 38% from September and 34% compared to October last year.  
The total of new homes sold (2,017 units) was less than the number of units newly launched (3,215). The number of units launched dropped about 40% over the same month in 2010.

Increasing Supply…
Secovi-SP’s report also shows that the rate of sales-to-supply (VSO) was 11.9% in October, which was down from 18.7% in September and 23.5% in the same month previous year. The VSO measures the relationship between the amount of units sold and the total market supply (units for sale) in that specific month. Given this scenario, Secovi-SP estimates that the number of units sold in 2011 will be 20% lower than 2010 sales.

Industry leaders try to explain it (without much success or clarity)
 

In a statement, chief economist at SecoviSP, Petrucci Celso said that the market profile has changed. “Property developers have been focusing on upper-middle class units, which reduces the supply of units per development.”
Hoping that Forbes 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.
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