05/08/2025
What do we expect tariffs to do to our housing market?
When tariffs exceed the ability of businesses to absorb the extra costs, consumers will be impacted. The higher the percentage applied, the greater the likelihood consumers will shoulder the added expense.
Unless changes occur, many common home building materials will be subject to tariffs of 10%, and in some cases, much more. Much of this additional cost will be passed along to consumers by way of higher new home prices. Since existing homes are the only alternative, their prices will likely go up, too. As a result, shoppers of all types of homes can expect prices to continue—and possibly accelerate—their rise.
And it doesn’t stop there. The costs of financing a home may be impacted, too.
Housing costs are a component of measuring inflation. Continued upward pressure can force the Fed to keep inflation at bay either by skipping anticipated rate reductions or even by raising rates again.
Simply put, it’s not likely that housing is going to become any more affordable going forward. Homes may become even less affordable.
For those who are ready, there may be no better time than the present to act. Locking in rates and prices at current levels may prove to save money over time.
A pre-approval is the best way to start the process, and we can help with that. Please reach out when you’re ready.
Dre Lic 01705581
Remax Gold
