Mexican housing booms as U.S. finds it difficult

As the U.S. housing sector struggles with the foreclosure problem, the housing sector in Mexico is gaining from it.

Now Mexico has a record growth in housing sector and it is one of the leaders in housing in Latin America. This indicates towards a better economic stability.

There may be many reasons for such spurt, but some of the prime one are
1. Low delinquency
2. Declining interest rate
3. The hurriedness of the investors to escape the US downturn
4. 6 years of economic growth and stability

Mexico has some specific characteristics different from the US. In Mexico
1. Only 6 percent of the 25.7 million homes are mortgage financed. Others buy it paying cash or build it themselves
2. Delinquency rates are below 4 percent
3. Lenders can be choosy as the demand is far more
4. Mexico lenders have enough space to grow their business. They can expand as the demand is more.
5. Mexico does not have a credit problem. There is no sub prime category in Mexico.
6. Few Mexican flip homes
7. Few Mexicans refinance their homes.

Because of all these characteristics, Mexico housing sector is more stable and more growing. The booming housing market will attract more investment and more foreign players. More money will sure help the real estate sector in Mexico to grow. More growth will bring more job opportunities and more cash in hand for the Mexicans. It may also indirectly help the US investors to recover some of their losses.