It's always a good idea to stay informed and be proactive when it comes to real estate investments, especially if you’re planning to buy a home soon. By taking a look at the predictions and trends for the upcoming year, you'll be able to make more informed decisions about your home-buying journey. Keep in mind that these predictions are just that: predictions. The real estate market is always subject to change, so it's important to stay updated.
Let’s take a look at what industry experts are saying about what we should expect in the 2023 housing market.
Rising Home Prices and Interest Rates
Due to rising demand, cost increases are expected in the real estate market. While many factors can affect national home prices, inflation is the number one problem that the market is facing right now. The rising costs of food and energy imports are negatively affecting our ability to afford things, making it more difficult to manage the country’s cost of living.
Higher interest rates will also affect the housing sector. Taking out a loan to buy a property becomes more expensive when interest rates rise. The effect on demand and pricing, in turn, will affect housing mortgage rates.
High Housing Supply
The local demand for housing in Metro Manila is on the rise as the economy continues to recover, attracting immigrants and OFWs from abroad to come home. While this can slow the rate of price appreciation, reports indicate that the percentage of vacant homes in the secondary housing market remains over 17%.
Interest in Real Estate Outside the Metro
As the demand for residential real estate in Metro Manila remains high, there is also a rising interest in other regions, particularly in Central Luzon and Davao City. The improvement of infrastructure making it easier to travel to and from provincial areas in the Philippines and the development of new business districts have contributed to this, among other factors.
One of the effects of the strict quarantines and restrictions in 2020 is the need for self-sufficient, master-planned communities. Buyers are looking for residential developments that will give them constant access to essential needs and leisure areas.
Developers are being proactive in responding to the dynamic needs of the real estate market. Recent global events and economic conditions are causing property developers to adapt to customer demand.
Amid the shifts in the real estate industry, Suntrust Properties stands out as the premier choice for affordable housing in the Philippines. With a diverse selection of properties catering to a variety of budgets, Suntrust makes sure that there's something for everyone.