Housing prices

[hogantiMember]

anyone have any sites/links showing housing prices relative to size over the last decade or longer? Interested to have a look at the fluctation of prices over this time. Of course it varies from region to region, but still would be nice to have an idea.

Did a google search and nothing came up that I found too relevant.

[FinruddParticipant]

Can’t help with that I am afraid, but suspect there will be an artificial surge over the past year or so. Local prefeitura here has just increased the official value of 3 of my plots from R$22k each in 2013 to over R$95k – R$140k (for the bigger one) for 2015! These are chunks of mata/jungle about 3.000 – 4.000 square metres each – no water, electrical supply, road access – nothing, and yet they are now valued at HUGE prices! If the same leaps were applied to other property, then the figures are not going to be very useful I suspect. I am told it is because property values were not re-adjusted for years, and then it all happened over the past couple of years, but am not sure.

Just to be clear – Market value of these lots is around R$10k – R$15k per plot IF you can find anyone crazy enough like me to buy them, and I only bought them because they create a nice jungle border between me and the nearest earth road!

[Anonymous]

I dont know how far back this goes or how accurate this is, but you might want to investigate.

http://www.zap.com.br/imoveis/fipe-zap-b/

you might find other stuff here, note the second (?) link is specifically for BH and might have some more resources for you http://defendaseudinheiro.com.br/tag/evolucao-do-mercado-imobiliario-no-brasil

[hogantiMember]

Thanks 3casas and finrudd!

[FinruddParticipant]

38 Special – I’ve reported you for consistent trolling. Please desist, it’s boring.

[gengibreMember]

What is 38 special’s problem with Hunter Peak? It must be something personal. So, just keep it personal and leave the guy alone on public forums..Tiredforeigner2015-02-21 19:00:34

[TonyParticipant]

The site you can get that info is under ZAP Imoveis. They publish the Fipe / Zap index once in a month.
Not a good as MLS , but it will give you broad strokes in terms of overall numbers. Once you locate the,my hey will email you the monthly list.
However, anything that is published with data in Brazil must be taken with a grain of salt. Data culling out here
Is a joke.

[StevenParticipant]

I’ve been thinking of doing a sell-buy for an apartment that I own in the ABC area. Sell the one that I have and buy another. My opinion has always been that the real estate market in the Sao Paulo area was due for a crash but one of the realtors that we use just confirmed that it has arrived.

http://www.zap.com.br/imoveis/fipe-zap-b/

This ZAP index quotes apartments listing for R$5100/sm but the realtor told us that the going rate in ABC is now R$2500/sm. He said that the prices have been dropping like a stone but, frankly, I don’t see that when looking at the websites imoveis.

Since I’m thinking about simply switching apartments it really doesn’t matter to me since both will bear the same rate. However, if the realtor is correct and if prices drop any lower, I might just send down some cash at today’s rate of 3.14 and sit on two apartments.

Any opinions of the validity of the realtor’s quote?

Steven2015-07-15 18:34:18

[TonyParticipant]

Steven.
Fair disclosure :
1. I am a licensed Real Estate Agent in São Paulo.
2. I live in the ABC Region.
About your situation.
1. Yes, it is a buyer’s market.
2. Price on ABC region took a hit. They were in fact inflated.
So up to this point , your broker might be correct , except when ….
3. Housing on the resale market list their marketable appeal. Caixa Economica is only funding 50% of the assessed/ negotiated selling price. Such as that you can only expect 80% funding on newly built units , once you buy them from a developer.
4. Credit squeeze makes loan approval harder than ever and, to boot, interest rates are climbing.
5. The ABC economy as a whole is in the rafters. Automakers are cutting jobs at unprecedented rates. Store front closings are noticeable everywhere.
Guess what…. Your property all of the sudden is worth less than the fair market price during boom years
I can almost be sure He/She hasn’t provided you with comps as an experienced US listing agent might do. In fact most real estate Brokers in Brazil, if not all of them, cannot provide you with market data, trends because they have none.
As result of this accross the board ineptitude, all you get for real is lip service. To sell you will have to price it at a point that will attract buyers. After all he/she are in the business of generating commission.
I am not buying this “is worth at best R$2,500 / sq meters. I would have to see where it is located , improvements , etc.
Sure job creation influence pricing. But here is something you should consider ..,.
Zoning changes in Santo Andre, and the limited supply of available land in Sao Caetano is going to tilt prices in your favor. However this is a long term prospect. Short term, you are holding property that you can’t cash out as quickly as you would hope for. And you will take a hit.
The Santo Andre case, city hall is charging an added penalty cost if you exceed a threshold of built square meter / lot square meters. It is hefty. Do much, small builders are eschewing high rises and going fir tenement house style building with virtually no condo costs and low to zero amenity content. And that’s what us selling.
The days of a quick buck artist flip are gone, at least for a while. Cash is king.
Hold it if you can. Get it rented. Or be willing to either trade or sell at loss.

[StevenParticipant]

Thanks. The new place that I’m looking at is R$0 condo. That is its major appeal.

As long as the price/sm of the old place is the same as I am able to negotiate on the new end then I don’t care what they sell for although I still consider keeping the old place to rent.

The new place is new construction and the builder is testing the waters at 50% more than I think it’s worth but he is still two months from completion and another month or two from occupancy. We had another realtor give us an estimate only a few months ago on my existing place and they estimated R$3500/sm. Still a long distance from the R$5100 that ZAP shows as current listing prices.

Let’s see – I’m willing to wait.

Thanks for all your good info.

Steven2015-07-15 23:11:46

[TonyParticipant]

Steven
Advertised prives are always inflated. You might spot a below market price on occasion. Clue : motivated seller.
Like I said , no combos, no MLS, it’s crapshoot.
Those triple deckers are coming handy as rental income only if you plan to buy the whole building. Otherwise you are not maximizing your returns properly.
They also sell faster since being new, can carry a 80% bank note through Caixa, are on the low price treshold,
Have minimum to no condo fees. So in a weak market, these puppies are movers. And builders know it too well.
Also, lots of them include land swap deals. A lot owner will take a unit in exchange , so the builder only spent his budget on building on land free.
In the ABC region , I would not buy an apartment if only I can get an equivalent in a single family home.
Land is getting scarcer, building permits are saddled with bureaucracy , and a single family can be rented as home or in some cases as a place of commerce.

[BeBeMember]

[Author]

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