The spring home shopping season is facing significant challenges due to tariffs and stock market volatility, causing increased economic uncertainty. A notable increase in home purchase agreement cancellations, reaching over 14% in a four-week span, reflects buyers' growing unease, especially as some fear potential layoffs and declining savings. President Trump's fluctuating tariff policies have led to concerns of a recession and affected the housing market, with mortgage rates spiking and making home affordability a critical issue. Realtors report that first-time buyers are particularly cautious, often avoiding properties requiring renovations due to rising costs from tariffs on construction goods. Despite this climate of caution, some older homeowners are showing renewed interest in real estate as a stable investment alternative amid stock market fluctuations.

Home purchase agreement cancellations have surged to over 14% in recent weeks, the highest since early 2020, as economic uncertainty grows and potential buyers face job security concerns.

President Trump's inconsistent tariff policies have contributed to economic volatility, with economists warning of possible price hikes and a looming recession, further complicating the housing market landscape.

The spike in mortgage rates, driven by bond market reactions to tariff announcements, poses a significant challenge for first-time homebuyers striving to maintain affordability.

Many first-time buyers are avoiding fixer-upper homes due to climbing costs of imported construction goods, influenced by tariffs, preferring move-in ready homes to mitigate financial risk.

Stock market fluctuations have significantly impacted potential homebuyers' savings, with the Dow experiencing its worst April performance since 1932, urging financial advisors to recommend conservative investment strategies.

Realtors have noticed a trend of older homeowners, who recently liquidated stock holdings, turning to real estate as a more reliable investment amid current economic instability.

Despite the general caution among buyers, real estate remains attractive to some investors seeking stability, illustrating the diverse responses to market challenges during this spring homebuying season.