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Data released by Secovi-SP (the São Paulo Housing Syndicate) saw a drop of 61.8 percent of new home sales in Brazil’s economic hub when comparing March 2011 with the same period of 2010.  A total of 1,566 units were sold – compared to 3,959 in March 2010 – also representing a reduction of 16.2 percent from February 2011.

According to the organisation: ‘Brazil’s economic environment has entered into a new phase which is less favourable when compared to the start of 2010 – largely as a result of the increase in inflation and the consequent raising of interest rates.’

Embraesp statistics also showed that the number of new real estate launches also saw a drop with from 2,902 to 1,530 units between February and March.  The VSO (Vendas Sobre Oferta) measurement – an index which shows the number of units sold out of the total of supply for the month – fell to 11.5 percent in March from 13.5 percent in February (and 28.2 percent in March 2010).

Secovi-SP commented that the huge prices rises witnessed in recent years could not continue in such am infinite manner and what is being seen now is a responsible adjustment of the market.  Furthermore, the organisation stated: ‘it is also worth emphasizing the slowdown in launches of Minha Casa, Minha Vida (My House, My Life) projects – despite the change in property values ​​that are part of the second phase of the program, there has been no adjustments that work in line with family incomes – essentially  meaning that many are being left out.’