Mexico's Deputy Finance Minister,Alejandro Werner,said,earlier this week, that the government plans to introduce a price index for Mexico houses.
He told Bloomberg news
that the new index would measure house prices using a technique similar to the
index co-created by Yale professor and economist Robert Shiller.
interview in New York published by the news agency yesterday,Werner said the
index will "provide better pricing information to financial markets and offer a
new tool to develop and hedge financial products linked to
Werner told Bloomberg,"To give more support to the housing
market and to financial products associated with housing,we’ll be introducing a
price index for housing in Mexico."
Mexico's stock exchange already has
Habita,an index tracking the value of
the six largest house builders' shares traded on its market,but no direct index
for Mexico house prices currently exists.
Robert Shiller,chief economist
at MacroMarkets LLC and a professor at Yale University,and Karl Case,an
economics professor at Wellesley College,developed their joint technique for
calculating such a house price index based on research from the 1980s.
a phone interview with Bloomberg,Case said having a housing price index "is a
major asset that drives consumer spending and that matters for the mortgage
market. If you have more data that prices have been volatile in the past,then
you have more data to make a rational decision."
The news will be
welcomed by real estate sellers,buyers and agents that seek a reliable
benchmark for pricing Mexico houses.
more about buying homes see our information on Mexico houses.