by Denise Franklin | May 3, 2025 | Home Prices
Let’s face it—most of us don’t spend much time thinking about tariffs. They sound like something best left to economists and politicians, right?
But if you’re planning to buy, sell, or build a home, tariffs—especially those like the ones imposed during the Trump administration—can quietly influence the housing market in big ways. Here’s how international trade policy might affect the price of your dream home.
What Is a Tariff and Why Does It Matter?
A tariff is essentially a tax on goods imported from other countries. The goal is to make imported products more expensive so people are encouraged to buy from domestic manufacturers.
But those increased costs don’t disappear—they get passed down the line.
When tariffs are applied to materials like:
- Steel
- Aluminum
- Lumber
- Appliances
- Cabinetry
…the cost to build or renovate homes goes up. And that affects real estate prices across the board.
How Tariffs Affect New Home Construction
Tariffs hit homebuilders especially hard. When the cost of construction materials rises, developers may:
- Raise home prices
- Delay or scale back projects
- Substitute cheaper (and possibly lower-quality) materials
Let’s say a builder planned to construct 12 homes. If imported lumber and stainless steel costs jump by 15%, they’re forced to make tough choices. Most likely, they won’t eat that cost—they’ll pass it on to buyers.
This means:
- Fewer new homes are built
- Inventory shrinks
- Prices go up due to limited supply and steady demand
Tariffs and Home Renovations
It’s not just new builds that are impacted. Tariffs can make home renovations more expensive too.
Think about a homeowner planning a kitchen remodel before selling. If imported fixtures cost more due to tariffs, they may:
- Increase their asking price to cover the upgrade
- Skip the renovation, which could lower their home’s value or market appeal
Even Resale Buyers Feel the Pinch
You might think this doesn’t affect you if you’re buying an existing home. But think again.
Higher home prices—whether from new builds or increased competition—can stretch your budget. If construction slows and inventory tightens, even resale homes become more expensive.
Real Estate Is Tied to Global Trade
Tariffs don’t automatically crash or spike the housing market. Many factors influence pricing—like:
- Interest rates
- Local supply and demand
- Labor shortages
- Broader economic trends
But the key takeaway? Real estate doesn’t exist in a bubble. What happens with trade policy and tariffs can have a very real effect on your wallet.
Key Takeaways: How Tariffs Affect Home Prices
- Tariffs increase material costs, which drives up home construction and renovation prices.
- Builders often pass those costs onto buyers, leading to higher real estate prices.
- Fewer homes get built, creating limited housing inventory.
- Even existing home prices can rise due to reduced supply and higher demand.
- Global trade policy is more connected to your home-buying journey than you might think.
Final Thoughts
If you’re thinking about buying, selling, or building a home, don’t just watch mortgage rates or local listings—keep an eye on global trade policy too. What happens at international borders could impact your housing budget more than you think.
by Denise Franklin | Mar 6, 2025 | Home Prices
A Photo by Mika Baumeister on Unsplash
As of February 2025, Core Logic has released its latest insights on US home prices, reflecting data through December 2024 and providing forecasts through December 2025.
Home Price Trends
Nationwide, home prices, including distressed sales, saw a year-over-year increase of 3.4% in December 2024 compared to December 2023. On a month-over-month basis, there was a slight increase of 0.03% from November to December 2024. Core Logic ensures accuracy by incorporating newly released public data into their results.
National Forecast
Looking ahead, the Core Logic HPI Forecast predicts a minor drop of 0.2% in home prices from December 2024 to January 2025. However, on a year-over-year basis, home prices are expected to rise by 4.1% from December 2024 to December 2025.
Market Dynamics
Despite improvements in housing supply throughout most of 2024, buyer demand remained subdued, resulting in a steady 3.4% growth in home prices since September. However, the forecast suggests an uptick in home price growth, hinting at a robust spring home buying season.
While this growth is promising, it also poses challenges for affordability. The Northeast continues to experience strong home price growth, with states like Arkansas, Oklahoma, and Missouri reaching new price records. The median sales price for single-family homes in the US climbed to $390,000 in December 2024.
Influencing Factors
Several factors are influencing the market. Proposed tariffs by the Trump administration and the devastating wildfires in Los Angeles County in January are expected to increase building material costs and delay construction times. These costs will likely be passed on to homebuyers and property owners.
Dr. Selma Hepp, Chief Economist for Core Logic, notes that home prices have remained flat since the housing market slowed down last summer. The Northeast has driven appreciation growth due to low inventories, while Southern markets have adjusted to higher inventories and increased variable mortgage costs. The Mountain West markets are also cooling as they seek stability after the surge in mortgage rates and price declines from pandemic highs. Despite these challenges, home prices increased by about 4.5% in 2024, slightly higher than the 4.1% increase in 2023. With improving inventories and elevated mortgage rates, forecasts suggest a smaller overall increase in prices for 2025.
Regional Insights
Nationally, home prices increased by 3.4% year-over-year in December. Hawaii and the District of Columbia saw annual declines of 1.1% and 0.7%, respectively. Connecticut and New Jersey posted the highest year-over-year increases at 7.8% and 7.7%.
Metro Area Highlights
The Core Logic HPI tracks home price changes across various market segments. In December 2024, Chicago saw the highest year-over-year gain among large US metros at 5.6%. Las Vegas was second at 5% and Boston was third at 4.6%.
Markets at Risk
The Core Logic Market Risk Indicator (MRI) identifies markets at risk of home price declines. Provo-Orem, UT, Tucson, AZ, Albuquerque, NM, Phoenix-Mesa-Scottsdale, AZ, and West Palm Beach-Boca Raton-Delray Beach, FL, are all at a very high risk of price declines over the next 12 months.
Summary
Core Logic’s HPI offers comprehensive coverage, including non-disclosure state data, built from industry-leading real estate public records, servicing, and securities databases. The index provides multi-tier market evaluations based on various factors, helping clients understand price movements in specific segments. Updated monthly, the index offers the fastest home-price valuation information in the industry, ensuring the most accurate indication of home-price movements.
by Denise Franklin | Feb 3, 2025 | For Buyers, Home Prices
The real estate market can feel like a whirlwind, especially as the seasons change. While many people think of spring as the ideal time to buy, there are actually several compelling reasons to consider purchasing a home before the season of blooming flowers and rising prices. Here are three key reasons why buying a home before spring can be a smart move.
1. Less Competition
Spring is traditionally the busiest time for real estate, with a surge of buyers and sellers entering the market. With more buyers in the market, the competition for homes can become fierce. Multiple offer situations are common, and bidding wars can drive prices up, leaving you with fewer options and less room to negotiate.
By purchasing a home before spring, you can avoid the frenzy of a competitive market. The winter months often see fewer buyers, which means you’ll have less competition to contend with. This can give you an upper hand when making an offer, potentially allowing you to negotiate a better price or more favorable terms.
2. Lower Prices
Typically, home prices tend to be lower in the winter months as demand slows down. Sellers who list their homes in the colder months are often more motivated to sell, which can lead to better deals for buyers.
If you can act fast, you may be able to secure a home at a lower price than you would in the spring or summer when the market picks up and demand increases. While the market varies by location, taking advantage of lower prices before spring hits could save you thousands of dollars in the long run.
3. More Time for Renovations and Settling In
Another advantage of buying before spring is the extra time you’ll have to make any necessary renovations or repairs. If you purchase a home in the winter or early spring, you can take advantage of the slower season to work on projects before the warmer months arrive. You won’t be competing with other homeowners for contractors or dealing with the typical busy season for renovations.
By the time spring and summer roll around, you’ll be able to settle into your new home and start enjoying it without the rush or stress of a competitive housing market.
Conclusion
While spring is often seen as the go-to time for buying a home, there are plenty of advantages to acting before the season officially begins. From less competition and lower prices to more time for renovations, buying a home in the winter or early spring could be the strategic move you need to make your dream home a reality. So, if you’re in the market for a new place, consider making your move before the spring rush starts—your future self might thank you!
by Denise Franklin | Nov 14, 2024 | For Buyers, Home Prices, Inventory
The real estate market is shifting, with two key trends emerging: more homes available and slower price growth. If you’re thinking about buying, here’s what these changes could mean for you:
1. More Choices, Less Competition
With more homes on the market, you have more options to choose from and less competition. The days of bidding wars may be behind you, giving you time to carefully evaluate properties without rushing into a decision.
2. Slower Price Growth Means Greater Affordability
While prices aren’t dropping drastically, slower price increases can make homes more affordable. This trend also means sellers may be more open to negotiations, potentially allowing you to secure a better deal.
3. Interest Rates Matter
Even with a slower market, rising interest rates can still impact your monthly mortgage payments. It’s important to factor in current rates when calculating what you can afford.
4. Long-Term Stability
The cooling of price growth may signal a more stable market, which is good news for buyers looking for a long-term investment. You’re less likely to see the wild swings in home values that characterized recent years.
5. Negotiation Power
With more homes and slower growth, you may find it easier to negotiate favorable terms, whether that’s a better price, fewer repairs, or other concessions from the seller.
What You Can Do:
- Get Pre-Approved: Having mortgage pre-approval shows sellers you’re serious and helps you stick to your budget.
- Explore New Areas: With more homes on the market, consider expanding your search to emerging neighborhoods.
- Think Long-Term: Buy a home that suits your future plans, not just your current needs.
In summary, the shift to more inventory and slower price growth presents a favorable environment for buyers. With patience, strategy, and preparation, you can find a home that meets both your budget and long-term goals.
by Denise Franklin | Oct 3, 2024 | For Buyers, For Sellers, Home Prices
Recent headlines have been buzzing about the median asking price of homes dropping compared to last year, and that’s sparked plenty of confusion. And as a buyer or seller, it’s easy to assume that means prices are coming down. But here’s the catch: those numbers don’t tell the full story.
Nationally, home values are actually rising, even if the median price is down a bit. Let’s break down what’s really happening so you can make sense of the market without getting caught up in the fear the headlines create.
Homes on the Market Right Now Are Smaller
The biggest reason for the dip in median price is the size of homes being sold. The median price reflects the middle point of all the homes for sale at any given time. And that’ll be affected by the mix of homes on the market.
To show you how this works, here’s a simple explanation of a median (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median (the middle one) is 10 cents. If you have two nickels and one dime, the median is now five cents.
In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change. The same is true for housing.
Right now, there’s a greater number of smaller, less expensive homes on the market, and that’s bringing the overall median price down. But that doesn’t mean home values are declining.
As Danielle Hale, Chief Economist at Realtor.com, explains:
“The share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further.”
And here’s the data to prove it.
Price Per Square Foot Is Still Rising
One of the best ways to measure home values is by looking at the price per square foot. That’s because it shows how much you’re paying for the space inside the home.
The median asking price doesn’t take into account the size of different homes, so it may not always reflect the true value. And the latest national price per square foot data shows home values are still increasing, even though the median asking price has dropped (see graph below).
As Ralph McLaughlin, Senior Economist at Realtor.com, explains:
“When a change in the mix of inventory toward smaller homes is accounted for, the typical home listed this year has increased in asking price compared with last year.”
This means that while smaller homes are affecting the median price, the average home’s value is still rising. According to the Federal Housing Finance Agency (FHFA):
“Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.”
So, while headlines may make it sound like prices are crashing, you don’t have to worry. With a closer look and more reliable data, you can see that prices are still climbing nationally.
But it’s important to remember that home prices can vary by region. While national trends provide a big-picture view, local markets may be experiencing different conditions. A trusted agent is the best resource to explain what’s happening in your area.
Bottom Line
The decrease in median price is not the same as a decrease in home values. The median asking price is down mostly due to the mix of smaller, less expensive homes on the market.
The important thing to focus on is the price per square foot, which is a better indicator of overall market value—and those prices are still going up. If you have questions about what home prices are doing in your area, reach out to a local real estate agent who can provide insights on your specific market.
by Denise Franklin | Sep 11, 2024 | For Buyers, For Sellers, Home Prices
If you’re wondering what’s going on with home prices lately, you’re definitely not the only one. With so much information out there, it can be hard to figure out your next move.
As a buyer, you might be worried about paying more than you should. And if you’re thinking of selling, you might be concerned about not getting the price you’re aiming for.
So, here’s a quick breakdown to help clear things up and show you what’s really happening with prices—whether you’re thinking about buying or selling.
Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally
Throughout the country, home price appreciation is moderating. What that means is, prices are still going up, but they’re not rising as quickly as they were in recent years. The graph below uses data from Case-Shiller to make the shift from 2023 to 2024 clear:
But rest assured, this doesn’t mean home prices are falling. In fact, all the bars in this graph show price growth. So, while you might hear talk of prices cooling, what that really means is they’re not climbing as fast as they were when they skyrocketed just a few years ago.
What’s Next for Home Prices? It’s All About Supply and Demand
You might be curious where prices will go from here. The answer depends on supply and demand, and it’s going to vary by local market.
Nationally, the number of homes for sale is going up, but there still aren’t enough of them to meet today’s buyer demand. That’s keeping upward pressure on prices – even though recent inventory growth has caused that home price appreciation to slow. Danielle Hale, Chief Economist at Realtor.com, said:
“. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.”
And here’s one other thing you may not have considered that could play a role in where prices go from here. Since experts say mortgage rates should continue to decline, it’s likely more buyers will re-enter the market in the months ahead. If demand picks back up, that could make prices climb a bit further.
Why You Should Work with a Local Real Estate Agent
While national trends give a big-picture view, real estate is always local – especially when it comes to prices. What’s happening in your neighborhood might be different from the national average based on what supply and demand look like in your market. That’s why it’s crucial to get local insights from a knowledgeable real estate agent.
As your go-to source for everything related to home prices, a local agent can provide the most current data and trends specific to your area.
So, if you’re planning to sell, they can help you price your house accurately. And when you’re ready to buy, they can find the right home that fits your budget and your needs.
Bottom Line
Home prices are still rising, just not as quickly as before. Whether you’re thinking about buying, selling, or just curious about what your house is worth, connect with a local real estate agent today to get the personalized guidance you need.
