The Homebuilding Market in Mexico
With Mexico becoming a more and more important player in the global economy all eyes are resting on the recent twists and turns in the country’s homebuilding market. The government had earlier proposed new housing industry laws that did not go well with industry leaders. However, under the changed scenario the government of Mexico has decided to review and reassess the laws after discussing with major housing industry players. This new decision has sent a wave of hope throughout the industry which is quite evident in the performance of the homebuilding stocks.
The Stocks Advance
The new government decision to review the proposed housing laws has positively impacted the market. All major homebuilders including Desarrolladora Homex SAB exhibited a vigorous performance. Homex added almost 12 percent to finish at 9.91 pesos. Geo and Urbi added 3.3 percent and 6.2 percent to finish at 5.33 pesos and 2.06 pesos. The Mexico Habita Index rallied 4.7 percent in Mexico City before the markets closed. The benchmark IPC index also added 1 percent to its value. This rise has alleviated the condition of the Habita Index that has plummeted almost 55 percent so far this year. The preference of houses among buyers has shifted drastically from single family homes to capital intensive apartments over the last few years and the homebuilding industry is trying hard to cope with the situation.
Opinion of Experts
Experts and analysts are of the opinion that the market is highly dependent on the new laws proposed by the government and that a round of discussion between the government and the industrial leaders would help in erasing any confusion that may have arisen in this sector. Solving a problem through dialogue is much better than direct confrontation as more constructive ways are expected to come out through mutual discussion.
It is needless to mention that forex traders are extremely happy with the performance of the homebuilding stocks. They invested their money on the anticipation of a better performance that would help them earn some quick profits and it seems that their objective has been fulfilled. However, in context of the global economic scenario, it can be said that it is better to watch before stepping.
- mexican homebuilder