Tariffs cause uncertainty in spring homebuying season, leading to market volatility

From Yahoo Finance: 2025-04-19 07:46:00

The spring homebuying season began with promise, but Trump’s tariff announcement caused financial volatility. Consumer confidence plummets as buyers fear inflation and recession. Prospective buyers and sellers are hesitant due to uncertainty. Last year saw low home sales, and this year’s outlook is uncertain.

Stock market declines don’t always lead to lower home prices; sales typically drop then rebound after corrections. Current market sees falling stocks and rising mortgage rates. Despite volatility, people still buy and sell homes due to various life events. Analysts predict further sales declines due to stock market and rate changes.

Market volatility affects Seattle differently; interest steady for homes under $1.5 million, weaker for $1.5 – $3 million range. Buyers hesitant due to financial uncertainty. Redfin survey shows 24% canceling major purchases due to tariffs. Despite volatility, homebuying remains competitive with low inventory and high prices.

In Detroit, tariffs slow spring selling season, but sellers still hold power. Listings receive multiple offers and sell over asking price. Market confidence remains despite trade war concerns. Chicago buyer rethinks strategy due to market uncertainty, considers smaller homes and additional income sources.

Despite market challenges, some remain optimistic. Sign up for newsletters and stay informed on the latest financial news to make informed decisions.

Read more: It was supposed to be the best spring homebuying season in years. Then came the tariffs.