T
he ripple effects of tariffs are being felt across various industries, and real estate is no exception. In Bay County, Michigan, the market is experiencing a slowdown due to the added costs of imported materials and rising mortgage rates.

    According to local realtor Wade Eckenrod, the number of active residential listings has plummeted to just 104 in the entire county. "It's like finding a needle in a haystack," he said. Buyers are still out there, but the pickings are slim, making it more challenging for sellers to find a buyer.

    The building industry is particularly vulnerable, as over 70% of lumber used in US construction comes from Canada. Eckenrod explained that the cost of importing wood, steel, and aluminum will increase due to tariffs, even if they're not directly imposed on these materials. This added expense will be passed down to consumers, making new builds less affordable.

    The National Association of Realtors recently reported a sluggish start to the spring homebuying season, citing elevated mortgage rates and rising prices as deterrents for buyers. Builders are hesitant to invest in new projects due to uncertainty about future sales.

    City Assessor Wade Slivik noted that Bay City has seen 174 single-family homes sold since January, which is roughly on pace with last year's numbers. However, the median sale price has increased by a staggering 35% this year, reaching $120,000 from last year's $89,000.

    For buyers like the Eckenrods, high mortgage rates and tariff uncertainty have put their dream home purchase on hold. "I don't want to double my payment on my new home," Wade Eckenrod said, highlighting the anxiety that comes with navigating this uncertain market.