Mexico Housing ‘Stable,’ Moody’s Says; Builders Rise
 Emily Schmall - Bloomberg
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September 03, 2009
| | Desarrolladora Homex SAB is Mexico’s largest homebuilder. | |
The outlook for Mexico’s housing industry is “stable” as homebuilders will benefit from purchases from low-income consumers using government-backed mortgages, Moody’s Investors Service said.
Desarrolladora Homex SAB, Mexico’s largest homebuilder, rose 3.4 percent to 79.27 pesos. Corporacion Geo, the second- biggest builder, added 2.2 percent to 31.08 pesos. The Habita index has surged 50 percent this year, compared with a 25 percent gain on the benchmark Bolsa index.
Home prices in Mexico remain stable because firms are building to the specifications set by government-backed mortgage lender Infonavit and the federal employee housing fund Fovissste, Moody’s analysts wrote.
“Prices, typically for low-income housing, have remained stable because they are really determined by the mortgage,” Philip Kibel, a vice president at Moody’s, said in a telephone interview from Mexico City.
While financing has diminished for high-income housing, builders who focus on low-income consumers can still borrow from banks, said Moody’s analyst Griselda Bisono, who authored the report.
“Ninety percent of the homes sold by Geo are taken out with Infonnavit mortgages, so that’s a definite plus,” Bisono said.
To contact the reporter on this story: Emily Schmall in Mexico City at eschmall(at)bloomberg.net |
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