Presidential Election 2022: Insight on Its Impact on Real Estate

Presidential Election 2022: Insight on Its Impact on Real Estate

While several presidential candidates are planning their campaigns for the 2022 election, the influence of the political process on residential real estate has yet to be recognized.

Across the country, the market appears to be continuing on its typical course. In general, presidential elections create uncertainty in the housing market, which changes sentiments among house buyers, sellers, and investors, influencing sale volumes and values. Regardless of who the candidates are, professionals and industry experts believe that the closer the election comes, the more likely its impacts on housing will be.

Because individuals fear change, the presidential election has a greater impact on the market than any other election. When we are stressed, we do not make sensible choices. The predictability of a presidential election tends to have an impact on real estate sentiments as well. The home market may endure fewer concerns if an incumbent emerges as a probable winner, securing the continuation of established policies in real estate.

Because of the local infection rate and government policy actions to combat viral propagation, the economic impact of the Covid-19 shock for the Philippines in 2020 was greater than we had initially expected.

“We anticipate that economic activity will continue to improve in the future quarters, with GDP increasing by 6.9 percent in 2021 and 8.0 percent in 2022, respectively,” said Marvin Germ, a stock market trader, entrepreneur, and book author. In recent months, the number of new Covid-19 instances reported on a daily basis has decreased, indicating an efficient government response to the problem and lowering the possibility of further lockdowns.
2022 Elections will most likely boost economic recovery

Economists predict that the economy would recover to pre-pandemic growth levels by 2022, owing in part to the influence of the May 2022 national elections.

Our predictions for the fiscal deficit anticipate a steady increase in economic activity during the forecast horizon, as well as the authorities’ ongoing adherence to their conservative approach to macroeconomic policymaking.

According to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, inflation and interest rates will return to pre-pandemic levels next year. “Economic recovery could accelerate shortly before or during the 2022 election year (as early as the latter part of 2021 or about a year from now),” he said.

Sales are down, but pricing may not change.

The influence of presidential elections on pricing appears to be less obvious. Because any movement in sales volumes lasts only a few months, pricing may not have enough time to adjust to reflect the change. According to experts, it can take anywhere from one to two years for a permanent alteration or a major change in pricing direction in a sales pattern.

The impacts of presidential elections on residential real estate often resonate stronger in the market’s highest ranks. Upper-income individuals are more likely to wait until after the election than the middle-class because any changes to a new tax code or new regulations would have a greater influence on them.

However, given today’s excellent economic picture in terms of mortgage rates, unemployment, and consumer confidence, the forthcoming presidential election may have minimal impact on first-time buyers or those looking for houses priced below the median. Because these individuals are more concerned about the opening of their work companies and the recovery of their financial income.

Your compare list

Compare
REMOVE ALL
COMPARE
0