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Brazilian Real-Estate Bubble Seen Deflating Without Pop
Brazil’s residential real-estate bubble may deflate slowly, not pop, as speculators abandon the market and builders such as Rossi Residencial SA (RSID3) sell off less profitable homes ahead of more lucrative sales. Prices are leveling off this year, rising about one-third as fast as in 2011, when developers were offering homes due for completion now, according to data compiled by economic researcher FIPE and real-estate website Zap Imoveis. Short-term investors and some individual customers are backing away from their deals. “We’re seeing an excess of new home deliveries, so the market is adjusting,” Rossi ... (full story)