President Donald Trump’s new tariffs on imported goods from 60 countries are plunged into global stock markets in a state of turmoil, causing fear of recession – but controversial trade policy can end as a sudden aid to the luxurious real estate market.
Not tremendously, the performance of the stock market has a huge impact on high -house buyers, who are more likely to invest in stock than their less rich counterparts.
Since April 6, the S&P 500 had fallen by 15% since Trump’s inauguration at the end of January, according to CNN, amid growing economic uncertainty. In the wake of his tariff participation on April 2, which the president praised as the “ERITION Liberation Day”, stock markets around the world suffered an estimated loss of about $ 10 trillion in market value.
The days of trading up and down followed, as China retaliated against the US at 84%tariffs. On April 9, the European Union approved its new taxes to $ 23 billion in products made by the US, according to Reuters.
Trump then responded by stopping all new tariffs for 90 days, with the exception of China, on which he raised fees to 125%.
However, a possible silver lining on this enraged market instability is that it can promote bitter investors to ignite shares in favor of costly real estate, “as they require the credibility of a tangible asset”, the chief of Realtor.comâ® Danielle Hale Hale in its 2025 market prediction.
“In an economic environment full of uncertainty, investors are looking for safe shelter. For many people, this is in bonds, but real estate can be an alternative to some,” says Hale. “While real estate can lose value, it is a tangible asset that not only provides housing, it tends to have more sustainable prices than shares.”
If Trump makes another turn U and fully implement tariffs as it is reported, according to Hale, which can undermine economic growth, reducing income and return on investment and reducing the purchasing power of home buyers.
“Right now, it seems that a comeback has been released for many places, but as we have seen very clearly in recent weeks, the situation may change, so it is wise that buyers of high houses stand by the news,” Hale notes.
High -level real estate are a safer bet
The good news for these deep pocket house hunters is that the high -level real estate market has fully growing space.
The total value of household real estate at the end of 2024 reached the second highest level ever recorded, according to a realtor.com analysis, reaching a shocking fabrication of $ 48.1 trillion, representing a 7% increase by a year ago. In particular, the profits in the value of real estate were greater among the ultrarich.
Regardless, the value of real estate consisted of only 18.7% of the total assets among 10% of US households, less than 20% two years ago.
Meanwhile, corporate capital, which includes future and other financial instruments, as well as shares of mutual funds, make more than one -third of their assets, the highest ever recorded.
Simply put, real estate constitutes a smaller part of the average rich portfolio portfolios at the end of last year, signaling that there is a lot of growth potential in the high -level housing market.
“The combination of significant stock market asset and debt relatively low in real estate among the 10% richer suggests that this group has more real estate investment capacities,” says Hale.
Realtor.com economist warns that immovable property has their own group of issues, namely, property taxes and insurance costs, as well as maintenance and maintenance.
“Still, real estate can be a place to park money, and when the world feels insecure, we often see an interest in home purchases and real estate,” Hale adds.
Rich Russians return to American real estate
The luxury US market appeal is not lost to the Russians with money, who are reportedly summarizing the purchase of expensive properties in New York City after a 10-year break.
“I’ve had five Russians looked at properties in the $ 10 million to $ 20 million in the last weeks” and town houses, “a New York broker was quoted saying Outlet Air Mail.
The change, according to the nameless mediator, comes down to Trump’s relations with Russian President Vladimir Putin, whom he previously regarded as a “genius” and “brain”, before bringing the Kremlin’s strong scene for his intransigence in peace with Ukraine.
But the cooling relations between the two world leaders apparently have done nothing to reduce the rich ambitions of ownership of the Russian house on American soil.
“They should be afraid to buy,” the Outlet broker told investors coming to Eastern Europe.
The reason for this is that the Trump administration seems to be more welcome for Russian oligarchs than its democratic predecessor. Although sanctions against the Putin government and Russian companies are still in force, the current Department of Justice has made units that have investigated the wrong money invested in real estate and yachts.
A Douglas Elliman broker told Air Mail that her Russian clients currently living in Monaco are looking forward to buying real estate at the US because they value American education and high quality construction.
How is the luxury housing market going?
Data from the Realtorsâ® National Association suggest that the $ 1 million plus house category has been the fast -growing sales for 21 consecutive months, and now accounts for 7.6% of the latest home sales.
The reason for this is that wealthy home buyers most often have a lot of existing capital and should not rely on death financing, and, therefore, they are not determined by high rates.
However, the number of houses for predetermined sale about $ 1 million was shrunk, reaching an average of 12.8% of all lists from year to 2025. For comparison, in 2024 that part was 13.6%.
The time in the market for high -level lists was transformed from 76 days to 75, even after the price of houses below $ 1 million remained unsold for 64 days, from 58 years ago.
Moreover, the price reduction ranged from 20.8% to 22.6% among houses at a required price below $ 1 million, but remained roughly flat among luxury properties.
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