SAO PAULO Oct 18 Home sales, launches and
deliveries in Brazil rose in August for the first time in 13
months, an early sign that the effects of a harsh recession, a
credit crunch and weak confidence among potential homebuyers are
beginning to wane.
Project launches jumped 70 percent while sales were 1.4
percent higher in August on an annual basis, university research
center Fipe and industry group Abrainc said in a joint statement
on Tuesday. Deliveries climbed nearly 14 percent, even as
cancellations rose 2.8 percent in the month from a year earlier.
While the results reflect an underlying improvement in
macroeconomic conditions, it might be too early to assess
whether demand for homebuilding is on the mend, Fipe and Abrainc
The supply of new homes at the end of August was enough to
satisfy demand for another 13 months if no new projects were
started, the report noted.
An index grouping Brazil's construction and real estate
companies trading in the São Paulo Stock Exchange has
gained almost 4 percent in the past three months, on hopes that
a four-year-long industry downturn has finally touched rock
Updated monthly, the Abrainc-Fipe homebuilding activity
indicator is a widely followed indicator of Brazil's housing
(Reporting by Guillermo Parra-Bernal, editing by G Crosse)