How Rising Tariffs Affect Home Sale in Oklahoma
Introduction
The real estate market is often shaped by a variety of economic forces, including interest rates, supply and demand, and local employment trends in economics. However, one factor that many homeowners don’t immediately consider is the impact of international trade policies by various nations —specifically, tariffs. If you’re planning to sell your home in the Sooner State, it’s essential to understand how rising tariffs might influence your property value, buyer behavior, and ultimately, your ability to close a deal. Understanding these impacts is crucial as the effects of tariffs are expected to become more pronounced in the coming months.
This blog explores how rising tariffs affect home sale and home prices in Oklahoma, as well as the potential impact on exports providing insight into what sellers need to know to stay ahead in a changing economic climate.
The recent imposition of new tariffs by President Donald Trump has sent shockwaves through the economy, particularly in Oklahoma. The tariffs, which affect imports from countries such as Canada, China, and Mexico, are expected to have a significant impact on the state’s economy, including the housing market. As a result, homebuyers and sellers in Oklahoma City are facing uncertainty and rising prices. In this article, we will explore the effects of the tariffs on the local real estate market and provide guidance on how to navigate the changing landscape.
This guide has been put together by the home selling professionals at Ogle Property Solutions
Published: April 20, 2025
What Are Tariffs and Why Do They Matter?
Tariffs are taxes or duties imposed on imported goods. When tariffs rise, the cost of those goods increases, affecting the pricing structure across a range of industries—including construction, manufacturing, lumber and transportation. Additionally, tariffs impact both imports and exports, influencing the broader economy by creating uncertainty for businesses and affecting trade relations. In turn, this can influence both new home construction and home renovation, which play indirect yet significant roles in the resale housing market.
So, how exactly could these international trade mechanisms influence your home sale and exports in Oklahoma? Let’s break it down.
Rising Tariffs and the Cost of Building Materials
Oklahoma has seen a steady housing demand in recent years, fueled by its affordability compared to coastal markets and a strong local job market. However, new housing developments and home improvement projects rely heavily on materials like lumber, steel, aluminum, and appliances—many of which are imported.
Rising tariffs on these materials, including essential ones like copper, can increase construction costs, leading to rising prices for new homes. This affects new home builders, who may pass those costs on to buyers through higher listing prices. As new home prices rise, resale homes in Oklahoma might seem like a better deal—provided they’re priced competitively. However, if your home needs significant repairs or updates, the higher cost of aluminum materials could deter potential buyers or reduce your profit margin if you’re footing the bill for pre-sale improvements.
Impact on Construction Costs
The tariffs have already started to affect construction costs in Oklahoma, with building materials such as lumber, steel, and aluminum becoming more expensive. This increase in costs is expected to be passed on to homebuyers, leading to higher home prices. According to an associate professor of economics, the tariffs could lead to a 10-20% increase in construction costs, making it more difficult for homebuyers to afford homes. The higher costs of building materials are also expected to affect the prices of new homes, making it more challenging for buyers to find affordable options.
Local Real Estate Market Trends
The Oklahoma City real estate market is expected to be affected by the tariffs, with home prices potentially rising due to the increased cost of building materials. However, the market is still considered a buyer’s market, with lower prices and more options available for homebuyers. The tariffs may also lead to a shift in the market, with more buyers opting for existing homes rather than new construction. As a result, homebuyers and sellers need to be aware of the current market trends and adjust their strategies accordingly.
Will Tariffs Impact Buyer Demand in Oklahoma?
Another key concern is whether rising tariffs will change buyer behavior. Tariffs that increase the price of everyday goods—like appliances, vehicles, and electronics—can lead to a general rise in the cost of living. When consumers spend more on these items, especially during a recession they often have less to allocate toward a home purchase.
For Oklahoma sellers, this could mean a slight decrease in the buyer pool, potentially making negotiation a useful negotiation tactic, or longer time on market. Budget-conscious buyers might lower their expectations or offer less for properties that require renovations. Homes that are turnkey-ready could become more appealing, while those needing work may linger on the market unless priced attractively. Buyers can save money by acting quickly before prices rise further.
Interest Rates, Inflation, and Purchasing Power
Tariffs can also contribute to inflation. When goods and materials become more expensive due to tariffs, new tariffs on imported goods often cause businesses to pass those costs on to consumers. Over time, this leads to overall inflation, which typically prompts the Federal Reserve to raise interest rates to control economic overheating.
Higher interest rates increase the cost of borrowing for businesses, directly affecting mortgage rates. As mortgage rates climb, buyers qualify for smaller loans, reducing their purchasing power. In Oklahoma, where affordability is a key draw, this could cool down buyer enthusiasm and lead to more cautious spending. To avoid future increases, buyers should lock in mortgage rates now.
This economic ripple effect is one of the less visible ways rising tariffs affect home sale in Oklahoma. Sellers might find that previously eager buyers are suddenly more hesitant, especially for those looking to site their first home or homebuyers with tighter budgets.
Oklahoma’s Unique Housing Market Conditions
It’s important to remember that Oklahoma’s real estate market has unique characteristics that may shield it from some of the harsher effects of rising tariffs in the region . The state offers low property taxes, affordable land, and a relatively stable economy driven by energy, agriculture, and aerospace industries.
However, tariffs could impact jobs in Oklahoma, particularly in industries like construction and manufacturing. Experts suggest that while some support the return of jobs due to tariffs imposed by various countries , the reality indicates a likelihood of job losses and challenges for local businesses.
Because of this stability, Oklahoma may not see the same level of volatility as high-cost housing markets. While rising tariffs can certainly introduce headwinds, they’re unlikely to cause a dramatic collapse in home values. That said, sellers should still be prepared to adapt to slower market conditions or negotiate more flexibly as buyers become cost-conscious.
Preparing Your Home for Sale Amid Tariff-Related Challenges
Understanding how rising tariffs affect home sale in Oklahoma is the first step. The next is to make strategic decisions when preparing your property for market. Taking these initial steps can make the process easier.
Here are some key strategies to consider:
- Focus on high-impact, low-cost improvements. Rather than gutting a kitchen or redoing an entire bathroom, concentrate on cosmetic upgrades that offer visual appeal without major material costs—like paint, lighting, or updated hardware.
- Work with local contractors and suppliers. Imported materials may come with higher tariffs, but local products and services could help you keep renovation costs in check.
- Highlight move-in readiness. Buyers facing inflation and high prices elsewhere will be drawn to homes that don’t require immediate upgrades. Staging, deep cleaning, and ensuring your home is well-maintained can go a long way.
- Price strategically. If buyers are squeezed by higher mortgage rates and living costs, competitive pricing becomes essential. Overpricing your home could lead to stagnation and longer time on the market.
Will Rising Tariffs Affect Appraisals?
Another often-overlooked aspect is how tariffs might influence appraisals. If the cost of construction rises significantly due to tariffs imposed by nations, it could alter how appraisers calculate replacement costs—a key component in certain valuation models. While this is more likely to affect new homes or insurance estimates, there may be a secondary impact on resale home appraisals.
Additionally, if tariffs depress buyer demand and sales volume slows down, comparable sales may reflect lower values, affecting appraisals of similar properties in your area. Appraisers and homeowners may have questions about how tariffs will impact property valuations.
Effects on Home Sales and Prices
The tariffs, introduced by the president, are expected to have a significant impact on home sales and prices in Oklahoma City. With the increased cost of building materials, home prices may rise, making it more difficult for buyers to afford homes. Additionally, the uncertainty surrounding the tariffs may lead to a decrease in home sales, as buyers wait to see how the market will be affected. However, for sellers, the current market presents an opportunity to sell their homes at a higher price, as the demand for existing homes may increase. Homebuyers and sellers need to be aware of the potential effects of the tariffs on the market and adjust their strategies to take advantage of the current situation.
Benefits of Selling Now
Despite the uncertainty surrounding the tariffs, there are benefits to selling a home now. With the potential for home prices to rise due to the increased cost of building materials, sellers may be able to get a higher price for their home. Additionally, the current market presents an opportunity for sellers to take advantage of the demand for existing homes. By selling now, homeowners can avoid the potential risks associated with the tariffs, such as a decrease in home sales or a recession. Furthermore, sellers can use the proceeds from the sale of their home to invest in other assets or take advantage of lower prices in other markets. Overall, selling a home now can be a strategic move for homeowners looking to maximize their returns and minimize their risks.
Should You Sell Now or Wait?
If you’re wondering whether to sell now or wait for tariffs and interest rates to stabilize, the answer depends on your personal financial goals and timeline. However, waiting in hopes that conditions will improve can be a gamble. Tariff policies can shift quickly, but their economic effects tend to linger.
If your home is in good condition and priced competitively, you may still benefit from Oklahoma’s generally strong housing market. Moreover, inventory remains tight in many areas, giving well-presented homes an edge despite economic uncertainty.
Conclusion
While rising tariffs might not make front-page news in Oklahoma’s housing sections, their ripple effects and uncertainty can subtly but meaningfully influence the local real estate landscape. From construction costs to buyer affordability, these economic measures can shape how quickly your home sells and for how much. The potential response from other countries to these tariffs could further impact the local real estate market, adding another layer of complexity to the economic landscape.
Understanding how rising tariffs affect home sale in Oklahoma allows you to make informed decisions about how to allocate your money, prepare strategically, and adapt to changing buyer expectations, particularly in terms of what consumers are willing to pay . Whether you’re a seasoned seller or listing for the first time, staying informed and working with a local real estate expert can help you navigate the market with confidence.
Tariffs may raise costs, but with preparation and the right approach, you can still achieve a successful home sale in Oklahoma—even amid economic headwinds and rising costs for materials like steel .
Looking to sell your house quickly and directly? Ogle Property Solutions can help you with that and give you a fair price for it. We can also help you list if that’s what you want to do. We can help you with all of your real estate needs. Call us today at (405) 293-3426 to find out more.
