By Michael Schiff, The Schiff Home Team
In today’s interconnected world, global events have a direct and undeniable impact on our local real estate markets. At The Schiff Home Team, we believe in helping clients understand not just what’s happening here in Maryland, but why — and how international developments can influence everything from construction costs to buyer confidence.
Rising Tariffs and the Cost to Build
One of the most noticeable impacts this year has been on new construction. Recent tariffs on Canadian lumber — now reaching up to 34.5% — have added roughly $10,900 to the cost of building a new home, according to the National Association of Home Builders. For buyers, this means higher prices. For sellers, it can create opportunity, especially if you’re listing an existing home that’s move-in ready.
Economic Uncertainty and Cautious Buyers
The U.S. economy contracted by 0.3% in Q1 of 2025, influenced largely by changes in government spending and preemptive import stockpiling in response to trade uncertainty. What we’re seeing on the ground is a growing sense of caution from buyers. Many are waiting longer, prioritizing financial stability before committing to a move.
Trade Tensions Fuel Market Volatility
Ongoing trade tensions with major economies like China and the Eurozone are affecting more than just stock markets. Investors are holding back, and real estate decisions — particularly in higher price points — are becoming more conservative. For those of us working closely with buyers and sellers every day, this shows up as longer decision-making cycles and increased demand for education and reassurance.
Regional Disparities Are Emerging
Markets are responding differently depending on their local economies. Areas with service-based industries and lower export reliance are faring better, while export-heavy regions are seeing job loss and declining demand. Maryland is in a unique position — with a strong healthcare and government employment base — and we’re still seeing steady movement here, even as some markets cool.
Home Price Growth Is Slowing, Not Stopping
National data from the S&P CoreLogic Case-Shiller Index shows annual home price growth slowed to 4.5% in February, down from 4.7% in January. This doesn’t signal a crash — it’s a normalization. If you’re a buyer, this means less competition. If you’re a seller, pricing your home correctly is more important than ever.
What This Means for You
Whether you’re considering buying, selling, or investing, now is the time to lean on trusted professionals who understand both the local and global dynamics at play. At the Schiff Home Team, we’re staying on top of market trends so you don’t have to — and we’re here to help you make confident decisions in any environment.
Have questions about what this means for your real estate goals? Let’s connect.