The FINANCIAL — Brazil’s house prices declined for the second consecutive month in September amid slowing economic activity, high interest rates and elevated inflation, according to Nasdaq.
House prices fell 0.12% in September, according to the FipeZap index, which tracks housing prices in the country’s 20 biggest cities. The index is produced by a think tank affiliated with the São Paulo State University.
In August, house prices dropped 0.01%, the first nominal decline since the index started to be compiled in mid- 2008.
For the 12-month period ended in September, house prices picked up 2.63%
Brazil’s annual inflation stands at 9.57%. The country’s statistics bureau will publish inflation figures for September and for the 12-month period next week.
House prices in the most desirable neighborhoods of Rio de Janeiro and São Paulo have doubled from 2008 to 2013, according to FipeZap. Real-estate prices in the country have lost traction as a sluggish economy as well as high inflation and interest rates hurt consumers’ confidence.
Brazil’s economy is expected to decline around 2.80% this year, according to economists surveyed by the country’s central bank.