Tariffs and Rising Costs

Jennifer Marie Quinn, Real Estate Agent Sun City Surprise, AZ

Ah, the wonderful world of tariffs. As of April 2^nd, President Trump’s widespread tariffs are in place. This has caused much speculation as to what effect this may have on the Arizona housing market. So what can we expect?

It is expected that building material such as lumber and steel will drive up building costs. Of course this is going to lead to a home price increase, paid for by buyers. Not to mention the potential for higher inflation and in turn higher interest rates. Jennifer Marie Quinn, Real Estate Agent Sun City Surprise, AZ

So what are tariffs?

Tariffs are a government-imposed tax on imported goods. Plain and simple. Right? Not so fast. Obviously, this policy may lead consumers to buy less foreign goods and more domestic products. But the ripple effects are more far reaching, especially in regards to home building material.

As the cost for materials rise so does the cost of new homes. This may hamper plans for upgrades and remodels too. Making for an environment that is more difficult for home buyers looking for a new build or even those seeking renovation. Investors are even faced with the challenge of reduced profits on real estate flips.

Jennifer Marie Quinn, Real Estate Agent Sun City Surprise, AZ