Brazil is Hot, U.S. is Not - at Annual Realtor Conference in New Orleans

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(NEW ORLEANS, LA) -- The mood at this year's National Association of Realtors (NAR) annual conference was one of cautious optimism for 2011.

To that end, NAR's chief economist Lawrence Yun stated in his keynote address that, "Now it is time for market forces do their job in the U.S. housing sector as we will clear all market impacts of the federal tax credit stimulus by December 2010."

Yun further stated, "We see very little change in median housing prices in 2011, maybe a 1% increase over the next 12 months. We also predict a slight increase in annual sales from 4.82 million units in 2010 to maybe 5.13 million units sold in 2011, but sales will remain choppy throughout 2011."

Yun also noted several other macro-market forces to watch out for in 2011 that could impact the housing sector which included inflation, deflation (consumers holding back on spending), the staggering budget deficit (if not dealt with soon it could lead to higher rates) and sharp increase of GDP of 4% to 5%.

NAR also introduced Rhode Island broker Mr. Ron Phipps as their new president for 2011.

In a separate press conference, Mr. Phipps commented that part of his focus in 2011 is to work closely with major banks to help develop reasonable credit standards for those consumers who are credit worthy. "Flow of capital is critical for the housing industry as are reasonable lending standards" said Phipps.

Phipps further stated that short sales are a real problem for Realtors nationwide because many banks are not providing feedback when presented with a sale opportunity. "We would much more prefer a 'no' from a bank than a non-response. At least we would know how we can proceed with our clients if we get a 'no'."

According to NAR, the top five banks represent 75% of the mortgage marketplace in the U.S., as compared to only 25% of the marketplace 30 years ago.

While the U.S. housing market is still treading water in 2011, certain International markets like Brazil and Hong Kong are exploding.

As the eighth largest economy in the world, Brazil's national real estate association called COFECI made a compelling presentation on their housing market at the conference.

According to COFECI's vice president Francisco Rodolfo Pesserl, over the last decade Brazil has had a newly emerging middle class that now represents over 52% of their 192 million population. "That is a new middle class with purchasing power for housing in Brazil", noted Pesserl.

Pesserl further commented, "Because of our strong economic growth, we now face a housing shortage of close to 5 million units. This housing shortage has lead to soaring property prices throughout the region."

To further illustrate this point, 40% of the 20 best performing stocks on Brazil's BOVESPA stock index are either real estate or construction related companies.

In addition, Brazil's government has stated that they plan to spend 19.5 billion reais (USD $11 billion) to improve infrastructure and prepare for the FIFA World Cup in two years. Rio de Janeiro, who will host the Olympics, expects as much as $90 billion in investments in the next three years, primarily in shipbuilding, iron and steel manufacturing and nuclear power.

Sao Paulo based real estate agent Graziella LaBate commented, "Brazil is on fire...it is crazy how property prices just keep going up...and with no end in sight."

The New Orleans based event, which ends today, drew an estimated 22,000 industry attendees this past weekend from all across the globe, including strong delegations from Brazil, France, Argentina, Australia, India, Canada, UK and the Caribbean.

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