Michael RushReal Estate Broker, Keller Williams Realty DTC · Real Estate Broker at Keller Williams Realty DTC

April 2025 | Tariff War & Colorado Housing Market Update 🏡

18 Apr 2025 · 3 min

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2:57

In this April 2025 market update, the presenter explains how the ongoing tariff war is beginning to affect inflation, construction costs, and the Federal Reserve’s policy outlook. While March CPI came in lower than expected, the speaker warns that tariff‑driven price pressures could soon push inflation higher, forcing the Fed to balance cautious rate cuts against a potential slowdown. Higher tariffs raise the cost of building materials, which can slow new home construction, tighten inventory, and lift home prices. The video notes a recent surge in buyer activity when mortgage rates fell to the low‑6% range, highlighting pent‑up demand entering the spring‑summer buying season. Specific to Colorado’s Front Range, single‑family home prices are broadly stable (with slight declines in Larimer County and Fort Collins), whereas attached condos and townhomes are seeing price drops. Demand has risen double‑digit month‑over‑month across the region. The presenter advises sellers to price correctly, use professional staging, photography, and robust marketing, and suggests creative financing options such as rate buydowns and loan assumptions. He promotes a loan‑assumption program that can deliver 3‑4% rates and close within 45 days, positioning it as a missed‑opportunity solution for buyers and sellers alike. The overall message is to stay informed and act decisively despite market uncertainty.

Chapters

The tariff war is fully underway and the repercussions are being felt across the world, not just in America. We saw lower inflation readings than we've seen in years for March and the market didn't even bat an eye. Goldman Sachs states that today's softer than expected CPI release feels backward looking given the large changes to trade policy seen in recent days. Going forward, the Fed is likely to face a difficult trade-off as tariff-driven price increases start to feed through to the inflation data and activity remains soft. We expect the Fed's initial reaction to be cautious, but the risks remain that a sharper-than-expected slowdown in the economy could result in a resumption to the Fed's easing cycle. So this is a likely outcome. The market slows down. Many say that we're already in a recession, and this puts pressure on the Fed to cut rates sooner. Tariffs are essentially taxes placed on imported goods. They raise revenue for the government, but they also increase costs for both the foreign producers and the domestic consumers. That's us. This means higher prices for building materials, resulting in higher construction costs, which could slow down new home development and tighten inventory, which could drive up home prices because of increasing demand. Tariffs disrupt global efficiency by raising prices and reducing trade flows. Other countries might retaliate with tariffs of their own, or it might just open up negotiations for better rates. Either way, buyers are starting to get used to mortgage interest rates, and we saw this by the huge increase in activity when rates dropped to the low 6% range a few weeks ago. There is a lot of pent-up demand in the market right now, and the timing is perfect for the most active time of the year in real estate, which is the spring and summer. Across the Colorado Front Range, we've seen single-family home prices stable besides a slight decrease in Larimer County and Fort Collins, while we saw decreases in attached condos and townhomes in most of these markets. Overall, we saw demand increases in the double digits in all of our Front Range markets from the previous month. Houses that are priced right, have professional staging and photography, and a great marketing plan are going quickly. And buyers can still get very creative with rate buydowns, closing costs covered, and more on resale homes and new construction. Loan assumptions are a powerful tool that many people aren't taking advantage of right now, and I have a program that streamlines the process and has closing within 45 days while getting a 3% or 4% interest rate that many people thought they missed out on. Stay informed and you can make great decisions in real estate. despite the fear in the market. I'll see you next week.