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Brazil Real Estate News: Poor Economy In August Puts House Prices Lower

Brazil's Real Estate is not in good shape as house prices have gone lower in August. This condition is directly affected by its poor economy.

Any country, be it in American, European, or Asian continent, the poor economic activities would certainly affect the lives of its people in all areas like jobs, house prices, and basic commodities. In the recent report of NASDAQ, Brazil is currently facing multiple concerns like inflation, high interest rate and poor economic activities.

As of today, the Latin America's largest country reveals the 12-month annual report reflected a 0.01% decline in its house prices in August. The data has been presented by "FipeZap, an index of home prices produced by a think tank affiliated with the São Paulo state university."

The Wall Street Journal has similar report with NASDAQ. It has highlighted "the first nominal decline since the index started to be compiled in mid-2008. By comparison, inflation in August picked up at a projected level of 0.25%."

Report also says that Brazil's statistics bureau will release the inflation figures for August including the 12-month period report next week. Initial data has been shared citing that home prices have picked up at 3.32%, which is "less than the projected inflation for the period," with an estimate figure of 9.56%.

Fipezap also have stated in its report that housing prices in most desirable neighborhoods of Rio de Janeiro and São Paulo have increased in twofold from 2008 to 2013. The real estate market in Latin America's largest country has greatly been affected at the same time has damaged the confidence of its consumer because of higher house prices, high inflation and sluggish economy.

What is adding more insult to its injury is that this condition would not be over soon because the country's economy is anticipated to continually decline around 2.26% before the year ends. This information has been revealed by Brazil's Central Bank that conducted the economic survey. "To combat inflationary pressures, he central bank is obligated to keep the Selic base rate at a high level,"currently at 14.25%.


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