LAS VEGAS (KTNV) — Two days after imposing 25% tariffs on goods coming into the U.S. from Canada and Mexico, President Trump is putting a pause on these tariffs for most goods.
All Mexican and Canadian goods covered by the United States-Mexico-Canada Agreement (USMCA) will not face these tariffs.
This pause will likely delay expected price hikes, as it lasts for a month until April 2. That is the same day President Trump says reciprocal tariffs will go into place.
“Whatever they tariff us, other countries, we will tariff them. That’s reciprocal, back and forth," said President Donald Trump.
If these tariffs are re-implemented, experts tell me it could impact home prices in our valley by increasing the costs of construction materials like lumber, drywall, concrete and more.
“I’m looking to buy as soon as possible so I can hopefully forgo some of the potential negatives that come up," said hopeful Las Vegas homebuyer Trenton Holthaus.
Holthaus is battling through the confusion of these now-delayed tariffs.
“I’m hoping that the tariffs don’t affect it that much where it really takes people like me out of the buying pool," said Holthaus.
Longtime Las Vegas realtor David Lee of Painted Desert Realty flips homes in the valley.
He has two remodels prepping for sale and says no matter what the tariffs do, he's forging ahead. Lee suggests buyers do the same by taking advantage of Cheaper prices now.
“So I suggest to get into a house as soon as possible," said Lee.
If the tariffs go back into effect, experts say prices for new builds could increase.
“The prices will go up accordingly to whatever that new builders have to build and pass off to the consumer," said Lee.
Lee says his company purchased materials ahead of time to cover both remodeling jobs in order to avoid any increases the now-delayed tariffs would have on the cost for materials.
Principal Analyst at Applied Analysis Jeremy Aguero says valley homes could go up thousands depending on tariff price hikes.
“We don’t sort of have the definite numbers yet, but if we look at sort of the impact the materials, the pieces that could come in, we look at the amount of the tariffs, it’s sort of in the $5,000 - $20,000 per unit range," said Aguero.
He tells me the $5,000 - $20,000 expectation is just a range as there is no telling the exact impact, plus some homes will be impacted less and greater than others.
Holthaus says tariffs or not, he'll stick with his home-buying goal no matter what.
“It wouldn’t stop me from buying, so it just kind is what it is," said Holthaus.
Experts tell me they don't know when the tariff impact could be felt by homebuyers, but suggest keeping an eye on the real estate market.
They tell me it changes frequently with home prices to mortgage rates.
West Coast Mortgage Group told me as of Thursday mortgage rates are at 6.25% in the Las Vegas Valley and FHA mortgages are at 5.75%. FHA is usually an option to help low-to-moderate families and first-time homebuyers.
