Note: This blog article was originally published last March 2024.
Planning to sell your home soon? The timing of a home sale can make a big difference on how much profit you’re getting and how fast you can close.
In the Philippines, late January to May is when real estate activity is usually at its busiest. This also aligns with our data at Real.ph, where we often observe a spike in listing activity after the month of December.
There are a couple of reasons for this trend. One, the holiday season has just subsided. Two, filing of tax returns is concluded by mid-April. And three, the dry season makes it convenient for people to go out and see what the market has to offer.
These are all great conditions that can potentially lead to a profitable and fast sale. But the best time to sell your home will largely depend on your priorities and overall financial goals.
Since the perfect timing varies from person to person, here are home-selling tips that’ll help you find that sweet spot.
Major factors to consider before listing your property
Before anything else, there are several factors that you’ll need to examine when you’re figuring out an ideal time to sell. One or a specific combination of these factors can be useful as you look for a home-selling strategy that works for you.
- Interest rates. The Bangko Sentral ng Pilipinas (BSP) sets short-term interest rates, which determine how much the government lends money to local banks. When this borrowing rate increases, there’s a higher cost for people to access credit and make investments — making potential buyers less enthusiastic about applying for a mortgage. Conversely, when the rate is down borrowing is a more appealing option, and in the context of real estate, this is usually good news. As of writing, housing loan interest rates are hovering between 1.25% and 12%. A government-backed institution like the Home Development Mutual Fund (PAG-IBIG) can offer a 10% rate on a 30-year loan. Meanwhile, private banks like Banco de Oro and Bank of The Philippine Islands offer 8% on a five-year loan and 12% on a 20-year loan, respectively.
- The state of the economy. Inflation and the significant rise in the price of goods is top of mind among many Filipinos. In January 2024, the inflation rate was at 2.8% which is lower than the 3.9% recorded in the previous month December 2023. Overall, the latest figures published by the BSP is significantly below the 8.7% inflation rate recorded in January 2023. However, the domestic price of rice continues to rise with a 22.6% surge in January 2024, a 14-year high since March 2009. If the government can continue to tame inflation across the board and people gradually start to feel less of the pressure, 2024 may prove to be a good year for some home sellers.
- Local market activity. Where you’re planning to sell and how active the market is have drastic effects on your asking price. In an ideal setting, you’d want to have a large pool of buyers jockeying for your property, which can drive up the home price. An area like Metro Manila, for instance, is a great place for property owners given its access to the vast majority of job opportunities in the country. But that’s not to say you can’t get good value for homes in other parts. You’ll need to delve deep and build connections to figure out the rhythm of the local market and plan accordingly.
- Lifestyle changes. No matter the season or the prevailing market conditions, a major life change has a more outsized impact on your decision to sell a home. It comes in many forms, from getting a new job to supporting a growing family and downsizing to a more modest house. But not all of them will require urgency. Work-related changes often entail immovable timelines, while some family-related changes can be timed with a major real estate move.
- How long you’ve owned the property. You’re likely to get a sizable return with property that’s been in your ownership for several years or even decades. This is especially important for homes located in areas that are booming or now have improved access to urban amenities. Just keep in mind that not all properties appreciate at the same pace — even if they’re in the same area. In some cases, you may need to hold off on a sale until you’ve taken some steps to increase home value.
For more value: sell during the first six months
If you’re aiming to get the most offers and a potentially high ROI, list your property from January to June. Homes for sale in the Philippines are often at their highest price points during this period due to a combination of relatively good weather and increased competition.
Many potential buyers will have settled their taxes by this time and have a better perspective on their budget for the year. Additionally, warmer and less rainy conditions make people more willing to stop by for home showings and open houses.
For a faster sale: sell during the academic break
If you’re primarily aiming to sell your house fast, consider timing the transaction during the academic break. Families with school-age children who are in the market for a new home are typically quick to make moves just before school starts.
With the current Philippine academic year ending in May 2024, the time between June and July is likely a good time to entertain potential buyers.
But moving forward, timing your home sale with the academic break may be a bit tricky. The Department of Education has stated that the country will gradually revert to the old academic calendar, which traditionally had the school break run from April to May.
Here’s a quick overview of the shift. We’ll update the info below when changes are finalized.
- Academic year 2024-2025 is set to begin on July 29 and conclude on May 16
- Academic year 2026-2027 is expected to run from June to April
- Academic year 2027-2028 is expected to run from June to March
For serious offers: sell during the last quarter
Although the “BER” months are in full swing by then, selling a home in October or even November isn’t impossible. It may not match the frenetic market activity during the dry season, but inquiries you receive during the lead-up to the holidays may prove promising. Why, you ask? With many Filipinos getting ready for Christmas and setting aside their budgets to splurge on loved ones, a good chunk of the market is cleared of casual and non-serious buyers. The ones who are on the hunt for a new home during this time will want to close the sale quickly just before having their Noche Buena.
The best time to sell is when conditions are right for you
It’s important to remember that these are just guidelines we’ve laid out based on the trends and data we’ve observed. When it comes down to it, the best time to sell your home, whether you’re in the Philippines or elsewhere, is when you feel you’re truly ready.
In addition to the variety of personal reasons and external circumstances that can come into play, there’s also the emotional aspect to consider. Parting ways with a home is rarely ever easy. When you’ve grown quite attached to a particular place and built relationships along the way, selling your home is no longer just a transaction.
So aside from sorting all your priorities and doing your market research, it’s crucial to be emotionally prepared to start and finish the process.
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