Understanding Tariffs and Their Impact on the Real Estate Market
In today’s ever-changing real estate market, uncertainty seems to be the only constant. With headlines buzzing about tariffs, interest rates, and economic policies, many realtors are left wondering—how does this affect my business and my clients?
It’s easy to feel overwhelmed, but as a real estate professional, your job is not to panic; it’s to educate, guide, and lead your clients with confidence.
Let’s break down what tariffs are, how they impact the real estate market, and what you can do to stay ahead.
What Are Tariffs, and Why Do They Matter?
A tariff is essentially a tax placed on imported goods coming into the U.S. The government uses tariffs for three main purposes:
Generating Revenue – Raising money by taxing foreign goods.
Protecting National Businesses – Encouraging consumers to buy American-made products by making imports more expensive.
Political Leverage – Using tariffs as a tool in trade negotiations with other countries.
While these policies may seem unrelated to real estate, they have a direct impact on homebuyers, sellers, and the overall market.
How Tariffs Impact Real Estate
The introduction of new tariffs—such as those expected under the next administration—can create uncertainty, drive inflation, and ultimately affect interest rates, which is where real estate professionals need to pay close attention.
1. Rising Costs for Homebuyers
Tariffs can increase the cost of materials like lumber, steel, and appliances, which means:
Higher prices for new construction homes.
Increased renovation costs for sellers trying to update their homes for the market.
Less affordable housing options for first-time buyers.
Pro Tip: Help buyers and sellers understand that waiting for lower prices may not be the best strategy in an uncertain market.
Watch my latest video for more insights on tariffs and real estate:
2. Interest Rate Volatility
When tariffs drive inflation, the Federal Reserve may respond by raising interest rates to combat rising prices. Higher rates mean:
Increased mortgage payments for buyers.
Slower market activity due to affordability challenges.
Hesitation from sellers who locked in lower rates and don't want to trade up.
What You Can Do: Encourage clients to focus on why they want to move, rather than waiting for the “perfect” time. Rates fluctuate, but their life goals don’t.
3. Market Uncertainty Leads to Hesitation
With uncertainty around trade policies, the economy, and future interest rates, many buyers and sellers feel stuck. They delay decisions out of fear, waiting for “stability.”
Your Role as a Realtor:
Be the voice of confidence and clarity.
Help clients focus on what they can control—like locking in rates now or capitalizing on current home values.
Offer market data and insights to guide informed decisions.
Your Non-Negotiables: Controlling What You Can
Here’s the good news—regardless of tariffs, inflation, or interest rates, you control your actions.
Instead of getting caught up in market fluctuations, focus on your non-negotiables, like:
Making consistent calls to nurture leads.
Following up with past clients.
Staying informed and educating your clients with the right data.
Attending networking events and personal development opportunities.
Success in real estate comes from staying proactive, not reactive.
Want to Stay Accountable? Join My Coaching Program
The market will always change—but your habits don’t have to.
If you’re ready to stay focused and consistent, my Solo Agent Accountability Coaching Program can help you:
✔ Stick to your non-negotiables.
✔ Stay ahead of market trends.
✔ Grow your business, no matter the economic climate.
Join the program HERE
