T
he US housing market is navigating a tumultuous post-pandemic landscape, with real estate experts weighing the potential impact of historic tariffs. "We're in a time of great crisis from a housing perspective," said Nectar CEO Derrick Barker. "It's crucial to support those on the front lines building housing." BH Group CEO Isaac Toledano expressed a more optimistic view, crediting President Trump's business acumen and suggesting he wouldn't intentionally harm the real estate market.

    Despite a 90-day pause on tariffs, Barker remains concerned that higher costs will add pressure to an already competitive market. He believes lenders and equity providers are less likely to provide capital due to uncertainty, reducing liquidity in the market. Toledano, however, is bullish, stating that real estate is a safe investment and that any impact from tariffs would be short-term.

    Mortgage rates have jumped back up to around 7%, with some industry leaders stockpiling materials like wood, concrete, and glass due to anticipated price increases. Barker confirmed this trend, while Toledano claimed his South Florida affiliates haven't seen similar stockpiling. Despite the uncertainty, both CEOs agree it's too early to predict the full impact of tariffs.

    They differ on how the Federal Reserve might respond to help the market. Barker believes lower interest rates would be a temporary fix, while Toledano thinks the Fed would act by lowering rates if things spiral out of control. The BH Group patriarch is confident that South Florida's "boom" can continue to weather any market disruptions, citing collaborations with high-end brands like the Ritz-Carlton and the W.

    Barker identifies certain areas across America as being less affected by tariffs, including those with newly renovated or constructed properties. He also believes places connected to the future economy will outperform. Toledano remains optimistic about South Florida's strong momentum, stating that the "smart money" continues to invest in the region.