Causes Of The Housing Collapse

Two of the main causes that caused the housing collapse is the fear caused by the economic crisis and political discourses apocalyptic-like that of Nestor Kirchner, former Argentine president continues to operate politically. The government has done its part in adding to the economic uncertainty, saying that if it is defeated in legislative elections, which comes to the country is nothing but chaos. The numbers in the housing market in most major urban centers in the country speak for themselves. According to a report of the Association of Notaries Buenos Aires, during the first quarter of this year the movement of buying and selling real estate in the province of Buenos Aires fell by 49%. In the Federal Capital, real estate sales plummeted 53.5% (although according to industry experts say, in March began to see some recovery) and reached its lowest level since February 2002. In the city of Mar del Plata, the fall in sales was 41.7% at the end of the first quarter. What may seem odd in the real estate market situation is that as demand shrinks, prices show a downward performance. This situation has an explanation and links to context: the great uncertainty that exists in the local economy, sell your property without a clear destination for the money derived from the operation, appears as a highly risky gamble they are only willing to accept those who are in desperate need. A clear reflection of what happens in the real estate sector is provided by the construction sector, according to data from the National Institute of Statistics and Census (INDEC) in March returned to shrink by 2.4% in its indicator seasonally adjusted, keeping downward expectations for the coming months.