T
he term "tariff" might be unfamiliar to some, but its impact on the real estate market is very real. In neighborhoods across the Northeast Valley, uncertainty and volatility are creating a sense of disruption and turmoil for home buyers and sellers. While there will always be individuals who need to buy or sell immediately, discretionary buyers are currently hesitant to engage due to market fluctuations.

    In areas like North Scottsdale, Carefree, and Cave Creek, retirees, high net worth individuals, and investors make up a significant portion of the buyer pool. If their investments take a hit, they may delay purchases until stability returns. The luxury market is particularly sensitive to stock market swings, as many buyers fund their real estate purchases through investments or liquid assets.

    If tariff issues persist, we might see a decrease in buyer enthusiasm, leading to longer market times and potentially lower price per square foot. According to Tina Tamboer's forecast, the monthly sales price per square foot could decline by 3.6% year-over-year.

    However, history has shown us that these situations are temporary. When the stock market corrects, luxury sales slow; when mortgage interest rates fluctuate, buyer psychology shifts quickly; and during economic uncertainty, sellers become more flexible with their pricing.

    Despite current challenges, our local market remains positive due to continued demand and strong economic health. Many people still want or need to live in this area. Let's hope for some clarity soon.