What Does Homeownership and Home Buying Look Like Moving Forward with New Tariffs?

The world of home buying and homeownership is always evolving, but with the introduction of new tariffs, there are some changes on the horizon that could impact prospective homeowners and those in the market for a new home. At the Pastorino Team, we’re committed to keeping you informed about how these shifts may affect you.

What Are Tariffs, and How Do They Affect the Housing Market?

Tariffs are taxes or duties imposed by governments on imported goods, often to encourage the purchase of domestic products. Recently, new tariffs have been put into place on a variety of materials commonly used in construction, such as steel, lumber, and other building supplies. When these materials become more expensive due to tariffs, it can lead to a ripple effect throughout the economy, including the housing market.

How Will Tariffs Affect the Cost of Homes?

One of the most immediate impacts of tariffs on the housing market will likely be the increased cost of construction. When materials like lumber and steel become more expensive, builders may pass those costs onto buyers in the form of higher home prices. For those looking to purchase a new home, it could mean paying more for similar properties than they would have a few months ago.

Will Existing Home Prices Be Affected?

While tariffs directly affect new construction, they can also indirectly affect the prices of existing homes. As new homes become more expensive to build, demand for existing homes may increase, driving up prices for resale properties. If you're a buyer in the market for a home, it’s important to understand that the price of homes may continue to rise as the effects of these tariffs take hold.

What Should Homebuyers Do in Light of New Tariffs?

If you're in the market for a new home or planning to buy soon, here are a few things to keep in mind as tariffs continue to influence the market:

1. Act Quickly: If you’re pre-approved for a mortgage and have been considering buying a home, it may be a good time to act. With construction costs rising, waiting to buy could result in higher prices down the road.

2. Understand Your Financing Options: Even with potential price increases, mortgage rates remain historically low. Work with a knowledgeable lender to understand what financing options are best for you.

3. Factor in Renovations: If you're eyeing an existing home, consider any home improvements or renovations you may want to make. If the home you’re looking at needs significant updates, keep in mind that construction costs might be higher due to tariffs.

Is There Hope for Buyers?

While higher costs for construction materials and rising home prices may feel discouraging, there are still ways to navigate these changes. Interest rates are still relatively low compared to historical averages, and with the right guidance, homeownership can remain an achievable goal.

The Pastorino Team is here to provide you with the latest insights and strategies to help you make the best decision for your future. Whether you’re buying a new home or refinancing an existing one, we’re committed to helping you succeed in today’s market, no matter the challenges.

If you have more questions about how tariffs might affect your home buying or selling experience, don’t hesitate to reach out to us today. We’re here to help!

A house listed for sale in a suburban neighborhood.