What to Expect in 2023 Housing Market

The importance of the real estate industry to the Philippine economy cannot be overstated. It's one of the country's most profitable sectors, and it employs a big number of people. In addition to being crucial to the nation's GDP (Gross Domestic Product), the sector also employs a large number of people.

Growth in the Philippine real estate industry is forecasted to be consistent over the next several years. This expansion is being fueled by a number of variables, including population growth, economic expansion, and improvements in physical infrastructure. The demand for dwellings is predicted to skyrocket over the one million mark by the year 2025, according to analysts. That need is being fueled mostly by demographic and economic expansion.

Although recent international events have slowed the economic recovery process, several industries are expected to see improvement in the not-too-distant future, according to analysts.

House Market Predictions 2023

We are rapidly approaching the new year, which will mark the end of 2022. That's why now is a great moment to look forward to 2023 with regard to real estate predictions. The outlook for the year 2023 varies depending on whom you ask. But generally, here is a synopsis of what industry experts in the Philippines have to say regarding the future of the real estate market in the country

An increase in the home prices

In general, cost increases are anticipated as a result of rising demand. However, there are numerous factors that can affect national home prices.

Inflation is the first problem. The fast-growing Philippine economy is threatened by the current rate of inflation. Inflation should be kept below 4% as per the mandate given to the central bank. The vast majority of this price increase is attributable to food and energy imports from outside the country. The capacity to buy things and keep living costs manageable might be negatively impacted by rising prices. This can cause price increases to slow down or even reverse in certain markets.

House and lot in the Philippines' rising interest rates

As for what comes next, interest rates are a major role. When interest rates rise, it becomes more costly to take out a loan to buy a property, which may have an effect on demand and pricing.

According to a management consulting business, higher interest rates will have an effect on the housing sector, particularly on mortgage rates. To fight the rising cost of living, the Bangko Sentral ng Pilipinas (BSP) increased the policy rate by 225 basis points between May and September 2022, bringing it to a total of 4.25 percent. This most recent hike was 50 basis points.

As a result, developers may use interest rates as a basis for their promotions and pricing structures. Given the abundant supply of RFO units or ready-for-occupancy housing inventory, it is wise for homebuyers to think about the accommodating payment arrangements offered by real estate developers.

An increase in the house mortgage rates

As of the third quarter of 2022, average bank mortgage rates were 7.8 percent, up from 7.3 percent in the second quarter and 7.4 percent in the same period of 2021. Because of how much interest and mortgage rates affect the financial feasibility of real estate investments, it is essential for those who would like to start their home investment to keep a close eye on these variables.

The housing supply remains high

Since the economy has already recovered from the effects of Covid, we may expect many more quarters of good growth before inflation or higher rates slow things down.

The local demand for housing in metropolitan Manila is on the rise, while expatriates and immigrants who have been living abroad are coming home to help prop up the residential rental market, all thanks to the revitalization of the economy. This brings us to the next consideration, which is availability. Adding more dwellings to the market may slow the rate of price appreciation.

Fortunately, reports indicate that the percentage of vacant homes in the secondary housing market remains over 17 percent. We are already seeing this in the real estate market, such as the housing segment from Vista Land, remains assertive in offering early move-in and rent-to-own arrangements for their RFO units. Also, developers like Lumina Homes are being proactive in responding to the large supply of homes on the secondary market by providing home sales leasing and early move-in promotions for RFO projects.

When is the better time to buy a house, now or in 2023?

The economy of the nation was a top priority this year as efforts were made to restore stability. A number of external issues, like the ongoing epidemic, the slower pickup of stimulus, the election and government change, worldwide inflation, and many more, have had a significant influence on the country's economy this year, making this an ambitious goal.

Investors as well as prospective buyers still saw real estate as a safe haven in the face of rising inflation, notwithstanding the weakness of the economy. Forty-three percent of respondents said that real estate was their preferred long-term investment, with shares in developed markets coming in at a distant second at 33 percent.

Overall with respect to the housing market forecast, it is suggested that investing in real estate that would provide a monthly income would be an even better hedge against inflation.

With this, we can conclude that the best time to make a house investment in the Philippines is now. Housing prices could be seen to increase by next year. So, if you're looking for more affordable housing, then the best house prices would be now.

However, this begs the question of whether you are ready to buy a home or not.

Good thing, the housing market predictions also promise us an increase in housing demand by next year, contrasting the housing downturn and housing market crash in the U.S home prices.

This means that if your goal is to get a home investment or if you just do not have enough savings for a brand new home this year, then 2023 still has a promising innovation for the existing home sales, especially in the regional housing markets. They still offer the more affordable house and lot for sale that is perfect for your home price growth with all the developing infrastructures in the rural area.

Whether you are planning to start your home investment now or still need some more time to save money for your brand-new house next year, Lumina Homes is still one of the leading best-deal home packages in the country these days.

With its affordable house and lot being offered in over 50 communities all over the country, Lumina Homes offer great flexible payment schemes to help its homebuyers not to feel the pressure in the financial markets.

It is also one of the most trusted developers in the country by the national association of realtors and real estate agent as well, providing you the security that you need for your home purchase.

Start investing in Lumina Homes now to see your home values rise over time!