Tariffs Are Hitting Orange County’s Real Estate Market — But Not How You’d Expect

Interest rates are holding steady. Spring is in full bloom. So why does the housing market feel… a little off?

On paper, everything looks like it should be buzzing: stable rates, more inventory, longer days on market (great news for buyers). And yet? There’s this weird pause happening. That subtle hesitation in buyers' eyes. The group texts from clients that start with, "Do you think we should wait?"

Let’s talk about the T-word that has everybody second-guessing: tariffs. And how they are effecting Orange County's real estate market.

Why OC Buyers Are Hitting Pause - The Tariff Effect. In this video, I break down what the new April tariffs mean for construction costs, renovations, and homebuyer psychology - and how savvy sellers can still win in a more cautious market.

For those of you who don’t know me, I’m Missy Wiesen — your Coastal Orange County real estate expert.I show you what it’s really like to live in The OC.

Thinking about buying, selling, or investing in Orange County real estate?Call, text, or scan the QR code to book a quick Zoom with me.

What Are the New Tariffs and Why Do They Matter?

Earlier this April, the U.S. announced a fresh round of tariffs on goods imported from China. While these new tariffs span a broad range of products, the ones raising eyebrows in the real estate world are the building materials: lumber, steel, aluminum, and appliances.

A visual reminder of the new tariffs announced in April 2025 - a key factor weighing on buyer sentiment in the Orange County Housing Market.

Translation: the stuff that goes into building, renovating, and upgrading homes? It just got more expensive.

Even if those cost increases haven’t hit the market yet, the impact is already here. Because when buyers hear the words "tariffs," their instincts kick in. They get cautious. They wait to see what it means. And in real estate, hesitation is everything.

How Tariffs Impact Housing (Even Before Prices Rise)

Let’s be clear: the numbers haven’t fully caught up to the headlines yet. But the sentiment shift? It’s already in motion.

Buyers start to question:

• "If I buy this fixer, will a remodel cost me double by fall?"

• "Will builders raise prices on new construction?"

• "Will appliance prices spike before I furnish this place?"

  
  

These aren’t hypotheticals. Tariffs raise the cost of materials, which raise the cost for builders and remodelers, which trickles down to buyers.

And the luxury market? That’s where the impact shows up first. High-end buyers tend to be more investment-savvy. If they think costs are about to spike — or worse, values might dip — they wait.

Impact on the Luxury Housing Market

Let’s talk luxury. High-end homes often feature premium materials — European stone, imported copper, custom glass — many of which are subject to the latest tariffs. These added costs can make new construction or upscale renovations significantly more expensive, especially for custom builds.

Custom finishes like these - from designer furniture to premium millwork - could become even pricier if tariffs on imported materials continue. For luxury homeowners and builders in Coastal OC, that means rising costs and longer lead times for high-end upgrades.

But beyond materials, it’s the uncertainty that has everyone pumping the brakes. As Fox Business reports, market unpredictability tied to international trade can make lenders more conservative and investors more hesitant. And when financing tightens up at the top of the market, it slows the pace of luxury sales — especially in coastal enclaves like Newport, CdM, and Laguna Beach.

What We’re Seeing in the OC Market Right Now

Here’s a snapshot of the Orange County real estate market post-announcement:

• Inventory is rising: There are more homes on the market.

• Demand is dropping: Fewer escrows are opening.

• Time to sell is up: The average market time jumped from 62 to 81 days.

  
  

And perhaps the biggest red flag: Consumer sentiment has collapsed since the announcement of deep tariffs on April 2.

Even in high-demand neighborhoods, especially along the coast, we’re seeing higher price points sit longer. Homes that would’ve been snapped up last year are now getting second looks — and second thoughts.

What It Means for Sellers

Here’s the reality: you can’t control tariffs. You can’t control headlines. But you can control how your home hits the market.

According to the April 14, 2025 Orange County Housing Report, sellers are facing the slowest spring market since 2020. The message? Pricing your home accurately and strategically isn't optional - it's essential. Text "accurate pricing" to 949-887-6644, for the full report.

In this environment, pricing right is everything. Buyers are cautious, and they’re not jumping in unless they feel like they’re getting it right from the start.

If you're selling in 2025, your strategy needs to be tighter than ever. This isn’t the moment for wishful pricing. It’s the moment to work with someone who knows how to position your home for maximum interest and real results.

And yes — that’s where I come in.

Ready to start your own OC story?

Whether you're buying, selling, or just exploring what’s possible — I'm here for it. Call, text, or scan the QR code to connect.

Thinking about buying, selling, or investing in Coastal Orange County? Let's hop on a Zoom and talk strategy. I'm just a click or a scan away.