With all the current factors at play, including tariffs and interest rates, now may be an opportune time for prospective homebuyers to make their move. Despite potential price increases due to tariffs, the historically low interest rates could offset these costs and provide a unique window for buyers to secure their dream home. As always, it's essential to consider individual financial circumstances and consult with professionals before making any significant real estate decisions.
Tariffs can have a significant impact on the real estate market, particularly in areas like home prices and construction costs. For instance, new tariffs may lead to higher construction costs for homebuilders, potentially increasing new home prices. This could mean a price hike of around $9,200 on average, according to some estimates.
However, it's important to note that the full extent of the impact on the housing market remains uncertain. As Tarek El Moussa, a prominent figure in the real estate industry, stated, "no one knows the impact" these new tariffs will have on real estate.
Despite the potential effects of tariffs, it's worth mentioning that interest rates for homebuyers have been on a downward trend, with the lowest rates seen since October 2024. The gap between current market rates and rates on existing mortgages is quite large, which may lead to increased seller activity and more opportunities for buyers.
