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s the first quarter draws to a close, the real estate landscape is poised for a pivotal shift. The spring season's uncertainty has given way to a new set of challenges, with the "tariff whiplash" casting a shadow over the market. The recent imposition of tariffs on imported construction materials like steel, lumber, and luxury finishes will undoubtedly impact home renovations and new constructions.

    This development could have far-reaching consequences for sellers and buyers alike. On one hand, homes featuring high-end upgrades or imported materials may see price increases as owners attempt to recoup higher costs. Conversely, homeowners planning to remodel before listing might face extended project timelines due to supply chain disruptions and increased expenses.

    As a result, demand is likely to remain strong for move-in-ready properties, giving sellers with well-maintained, updated homes a competitive edge in the market. The luxury real estate segment, however, will be influenced by stock market performance, while mid-range buyers may feel the pinch of rising mortgage rates.

    Despite recent market fluctuations, the Phoenix luxury market remains resilient, driven by cash transactions and wealth-based purchasing power. Inventory levels are on the rise, with active listings increasing by 44% year-over-year, giving buyers more negotiation leverage. Prime properties with desirable features continue to attract strong demand, making it an ideal time for motivated buyers and sellers to achieve successful transactions.

    As we head into the summer months, a typical seasonal slowdown is expected. But for now, savvy buyers and sellers can capitalize on opportunities by working with professionals who understand the intricacies of the market.