Tariffs, Trump & Their Effect on the Real Estate Market!

Lets face it – the stock market’s recent volatility is enough to give a pause to even the most risk-tolerant investors. Since Trump has threatened to impose tariffs on exports from most countries, both Wall Street and Main Street have been concerned enough to pull money out of the market. Although the tariffs will increase inflation, the job market remains high and most pundits think that a declining stock market doesn’t signal a weakening economy.

In the Triad real estate market, appreciation has remained steady at about 5% per year. Investing in real estate is a decent hedge against the current stock market’s volatility, although the current high costs of residential real estate is a deterrent from buying now. Higher than-expected prices and interest rates of around 7% for investment properties significantly limit the cash flow for rental homes.

Personally, I’m long on the stock market, and long on the real estate market, and I think it is wise to have money in both. If you are looking 10+ years out, this is a good play. The basic principles of investing in real estate and the stock market are the same; buy low, and buy quality.

POINTS TO PONDER – APRIL 2025
Stock market – more sellers than buyers – stock prices falling.
Triad real estate market – more buyers than sellers – home prices increasing.

MY BEST ADVICE
Hold your cash. Look for buying opportunities in the stock market. Always invest in quality companies. Remember, that you can’t perfectly time the market, hire a professional to guide you.

Cheers to gold season!