Estimated read time: 2-3 minutes
- Tariffs on Canada, Mexico, and China are impacting the Utah housing market.
- Real estate agent Michael Wolters highlights increased costs for building materials like lumber.
- Despite challenges, Salt Lake City's housing market remains active and home values appreciate.
SALT LAKE CITY — Experts are warning homeowners about anticipated changes to the housing market. Policy changes from the White House are impacting buyers and sellers alike.
Americans should expect to feel the impact of tariffs imposed on Canada, Mexico and China. A lot of the materials from those countries are what we use to build homes.
Real estate agent Michael Wolters has been in the business for more than a decade. He said these tariffs are "another punch to buyers."
"The major component of a house, is lumber, is wood," Wolters said. "So when we're having to buy that at an increased rate from another country, the cost of that is not going to be eaten up by the builders."
Wolters said there will always be "noise" in real estate, whether it's with interest rates or tariffs.
He said the cost of lumber, steel, aluminum and other building materials will impact new builds and home additions.
"The interesting thing right now is a lot of your builders have already purchased some lumber," Wolters said. "They get this stuff maybe six months or even more in advance."
Wolters said it's likely we'll feel the sticker shock later, but it could be significant. It could be up to $10,000 per house.
Beyond tariffs, homeowners are taking other economic factors into consideration.
"China just placed a tariff on all of our incoming agricultural goods that are coming from the U.S.," Wolters said.
In response to President Donald Trump's tariffs, China imposed a 15% tariff on American farm products.
"Whether it's, you know, apples or, I'm thinking in the summertime, corn … your vegetables, I think those prices have the likelihood to go up," Wolters said.
He said when buyers are spending more goods, it impacts how much they're willing to pay for a house.
"The big stress is, you know, they've got so much more going to just living and providing for food, that it takes away from their budget and their ability to afford the house that they want," Wolters said.
Despite economic hurdles, Wolters said the Salt Lake City market is still performing.
"Homes are still selling; homes are still appreciating. So, if you're a seller, that's good news because your home's gaining value," he said. "And if you're a buyer, it tells you that the marketplace is still functioning and still thriving, even with this outside noise."
Photos
Show 1 Photo
