April 2025 Market Update: How Trump’s Tariffs Are Shaking Up Real Estate

On April 2, 2025 — now dubbed “Liberation Day” by former President Donald Trump — the U.S. economy was rocked by a bold new trade policy: a universal 10% tariff on all imports, with significantly higher tariffs for certain nations like China, whose goods are now taxed at 145%. These sweeping measures aimed to “level the playing field” for American manufacturers, but the ripple effects have gone far beyond trade.

Almost immediately, markets responded with shock. The Dow Jones plunged over 4,000 points in two days, the S&P 500 saw a record 10% drop, and nearly $6.6 trillion in global value was wiped out. Investors are understandably spooked — and the real estate market, though often more insulated than stocks, isn’t immune.

So what does this mean for homeowners, buyers, sellers, and investors in the real estate world?

Real Estate Under Pressure: The Fallout Begins

• Skyrocketing Construction Costs

Many core building materials — from steel and aluminum to imported lumber, appliances, and lighting fixtures — are subject to new tariffs. Builders are now facing significantly higher material costs, and unfortunately, those increases often get passed along to buyers.

New construction homes may become more expensive or delayed, and for homeowners considering renovations, the costs could be unexpectedly steep.

• Mortgage Market Jitters

While President Trump has urged the Federal Reserve to cut interest rates, Fed Chair Jerome Powell is signaling caution, citing the risk of persistent inflation as a result of tariffs. If inflation rises but rates stay put (or even increase slightly), mortgage rates could follow, making home financing more expensive.

Even if rates remain stable, the uncertainty could cause lenders to tighten their credit standards, making it harder for buyers to get approved.

• Buyer Confidence Is Shaky

When stock portfolios fall and recession fears rise, buyers tend to hit the brakes. First-time homebuyers, in particular, may decide to delay entering the market. High-net-worth individuals who rely on investment income may also pause on major purchases.

For sellers, this could mean longer days on market and increased pressure to price competitively — especially for higher-end homes.

What This Means for YOU

For Buyers:

• Consider locking in rates soon if you’re financing.
• Focus on move-in-ready homes to avoid costly post-purchase renovations.

For Sellers:

• Prepare for longer sale timelines and price adjustments.
• Make smart, strategic upgrades — but avoid over-investing in improvements that are now more expensive.

For Investors:

• Look at real estate as a potential hedge against inflation — but be selective.
• Income-producing rentals in stable markets may offer the best balance of risk and reward.

Spring Market Still Holds Opportunity

April is traditionally one of the busiest months in real estate — and despite the turmoil, many people still need to move. Life changes, job relocations, and family transitions don’t pause for policy shifts.

The key to navigating this moment is strategy. Work with professionals who understand not only local trends but the bigger economic picture. Whether you're buying, selling, or investing, having a clear plan and staying informed can help you move forward with confidence — even in uncertain times.