Tariff Turmoil Takes a Bite Out of Spring Home Sales

A jump in the number of homes for sale and a dip in mortgage rates was supposed to unleash nervous buyers during the spring home-selling season. But tariff jitters are keeping homebuyers on the sidelines instead, according to a report from online real estate brokerage firm Redfin.

Pending home sales in April fell by 3.5% from March, the steepest monthly decline since August 2023, according to Redfin data. April existing home sales also declined to a six-month low.

Spring is when families often plan to sell or buy a home, to correspond with the school year, and conditions have improved thanks to more available inventory.

Active listings in April were up nearly 17% from the same period last year, offering home buyers a wider selection of properties. And while mortgage rates remained elevated at 6.73% in April, that’s still about a quarter of a percent lower than the same time last year.

However, agents said many home buyers are reconsidering a purchase, given the economic uncertainty over tariffs.

High Housing Prices Also Worry Buyers

“That uncertainty is freaking prospective buyers out, even though in many cases it’s not having a tangible impact on their ability to buy a house,” said Dan Close, a Redfin Premier real estate agent in Chicago. 

The unsettled economy is also driving sellers’ decision-making. “A lot of people are selling their homes and downsizing because they’re worried about the economy,” said Meme Loggins, a Redfin Premier real estate agent in Portland, Ore. “During the pandemic, everybody wanted more space for a home office or for their kids to run around, but now people are more focused on saving money.”

Indeed, nearly one in four U.S. residents told Redfin in an April survey they were canceling plans to make a major purchase due to concerns that President Donald Trump’s tariff plans will drive up prices. While Trump recently lowered tariffs on China to 30%, they’re still higher than before he took office. Trump has also imposed tariffs on steel and aluminum, which are expected to boost the cost of those construction materials.

High housing prices are also deterring buyers. The median home sale price was up 1.4% year-over-year in April. As a result, a typical home stayed on the market for 40 days before going under contract, the slowest since April 2019. And buyers typically got 1% less than their asking price.

“I’ve written ridiculously low offers for buyers that have been accepted,” Loggins said. “I just had a buyer get nearly $50,000 under the asking price for a home listed at $849,000, even though similar homes have been selling for $830,000. You’d be surprised by what sellers are willing to take.”