STXNEWS LATAM-Brazil home prices to start cooling -FIPE

Mon Feb 4, 2013 1:05pm EST

Housing prices in Brazil's biggest cities are likely to slow their rise beginning in 2013, as salary and credit grow more moderately, according to Eduardo Zylberstajn, an economist running the real estate price index at economic research institute FIPE.

"The conditions driving real estate purchases shouldn't improve as much as they have recently, which should mean less pressure on prices," Zylberstajn said on Monday at an event to discuss the institute's FIPE Zap index.

Going forward, price increases are more likely to keep pace with inflation, he said, except for major cities such as Sao Paulo and Rio de Janeiro, where housing prices may climb faster.

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