South America Trendswww.drmprefab.com

According to trend, the average price of new apartment in Sao Paulo and other opulent areas change by around a quarter.

During the past eight years, wages of people increases and the purchasing power of people has been boosted further.

Study examines the developments in mortgage credit and the housing sector in Latin America during the past decade, and compares them with those in other emerging economies. Despite data limitations, the study closely examines the real estate and mortgage market to further assess.

Analyses

Credit expansion in much of Latin America has been greatly influenced by relaxed financing conditions and favorable terms of trade.

In particular, mortgage sector have shown notable credit expansion which have been significantly influenced by legal reforms and government subsidies.

Many countries of Latin America that experienced increase in mortgage credit have also experienced increase in home prices.

From 2005 and 2011, the more financially integrated economies of the region have recorded an increased on the average real home-price at an annual rate of roughly 6 percent.

Though this is well below than that of emerging Europe, it is still above than what have observed in emerging Asia.

The study also suggests that mortgage growth is above levels dictated by past long-run trends in a few economies in the region (notably Brazil).

However, this should be taken with extra caution since it does not capture changes in trend credit growth or structural breaks, which might arise due to the adoption of particular policies.

Using a stylized econometric model, the study also shows that house price trends reflect changes in economic fundamentals such as real house price, real interest rate, real per capita GDP and population.

In addition, it has been examined that low direct exposure of banks to the mortgage market, the small share of non-performing mortgages and few existing household indebtedness have played an important role in mitigating the impending negative impact of the rapid growth in mortgage credit and real estate prices.

Thus, saving the financial market from potential fragilities.

The cost of construction and the options of obtaining house at a reasonable price exist with the prefab house options and green technology.

If prefab home factory is setup in Latin America the cost of prefab houses will become more affordable to many families.

Presentation Attribution - Credits

For the purposes of this presentation, the following images have been used:

• Slide 1: Image courtesy of [digidreamgrafix] / FreeDigitalPhotos.net

• Slide 2:"Ponte estaiada Octavio Frias de Oliveira 01 Sao Paulo 2008 08" by Mariordo Mario Roberto Duran Ortiz - Own work. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Ponte_estaiada_Octavio_Frias_de_Oliveira_01_Sao_Paulo_2008_08.jpg#mediaviewer/File:Ponte_estaiada_Octavio_Frias_de_Oliveira_01_Sao_Paulo_2008_08.jpg

• Slide 3: Image courtesy of [samarttiw] / FreeDigitalPhotos.net

• Slide 4:"Dark Banespa" by Silvio Tanaka - originally posted to Flickr as Dark Bandespa. Licensed under CC BY 2.0 via Wikimedia Commons. (http://upload.wikimedia.org/wikipedia/commons/6/6a/Dark_Banespa.jpg)

• Slide 5: Image courtesy of [cuteimage] / FreeDigitalPhotos.net

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