Posted by Jonathan J. Miller -Saturday, August 20, 2011, 11:15 AM
A primary news service in Brazil, Jornal da Globo, interviewed me on the housing market and I did a quick overview of the 2008 and laid out the US part of the story. If you blink you might miss me but its a balanced story and it seems to me like Brazil is in year 2006 of our cycle.
The reporter told me that their economists and regulators say they are not in a bubble. However consumers have easy access to credit and there has been double digit multi-year housing growth far outpacing rental prices. That’s a housing bubble, no?
Incidentally, the day before this interview I was interviewed by a Chinese Television station with a similar story but less optimistic about the state of their market – saw it as a bubble.
Here’s a good Financial Times article on the Brazil housing market from last spring: Housing boom raises fears of Brazil bubble [subscription]
Entenda as causas do crescimento nos preços dos imóveis no Brasil [Jornal da Globo]
Understand the causes of growth in property prices in Brazil [English Translation]