📉 How Tariffs & Wall Street Chaos Are Shaking Up California Real Estate in 2025 🏡

At HOTT Homes Property Management and Real Estate, we keep a close eye on the financial pulse of the nation—because what happens on Wall Street and in Washington doesn’t stay there. It impacts your mortgage rates, your down payment options, and ultimately, your buying or selling power. 📊

And right now? That pulse is a little shaky. 😬

🔍 Tariffs, Interest Rates & Your Down Payment

Tariffs and trade tensions are fueling stock market volatility, and that’s making it harder for many to afford a home—especially here in California. 💥

According to a 2024 NAR survey, 9% of all homeowners used retirement funds to purchase a home. And among younger generations, the numbers are even higher:

• 👶 Gen Z (18–27): 16%

• 👩‍💼 Millennials (28–44): 12%

• 👨‍🦳 Gen X (45–59): 7%

• 🧓 Boomers (60–78): 8%

When the stock market dips, it directly hits those retirement accounts—which means fewer funds for down payments and smaller budgets for buyers.

📈 Fed Holds Back on Rate Cuts

The Federal Reserve hit pause on interest rate cuts as of January 29, 2025, shifting into a cautious "wait-and-see" approach 🛑.

Even with the Atlanta Fed reporting that U.S. GDP shrank by -2.8% in Q1, rising 10-Year Treasury bond yields are making the Fed think twice about slashing rates anytime soon.

➡️ Translation: mortgage rates could stay elevated longer, putting pressure on affordability across California.

💸 Wall Street Volatility = Real Estate Ripples

Stock market turbulence is more than just headlines—it’s a key driver of home prices, especially in high-cost areas like California.

As highlighted by Jonathan Lansner of the OC Register, past data shows:

📊 When the S&P 500 drops 10%+, California home prices:

• Still rise 71% of the time

• But with weaker 6.7% annual growth (below the usual 7%)

📈 When the S&P 500 rises 20%+, home prices:

• Jump 80% of the time

• With 9% average annual growth

Fun fact: In 2024, the S&P 500 ended up 23%, yet CA home prices rose only 5%. Not exactly the boom we hoped for.

🏘️ What This Means for Inland Empire Buyers & Sellers

If you're in Claremont, Upland, Rancho Cucamonga, Pomona, Glendora, San Dimas, or the surrounding Inland Empire, here’s the takeaway:

• Stock market chaos hurts retirement accounts

• Retirement accounts are a key source for down payments

• Down payments affect buyer confidence

• And that impacts home values and sales activity

The more uncertain the economy feels, the more cautious buyers become.

🧠 Bottom Line: Knowledge = Power

In real estate, timing and information are everything. Whether you're looking to buy, sell, or invest, you need a partner who understands the market from Main Street to Wall Street.

📲 Want personalized advice for your property or neighborhood?
Reach out to HOTT Homes Property Management and Real Estate and let’s talk strategy.

🧡 HOTT Homes Property Management and Real Estate
📍 Proudly serving the Inland Empire with experience, integrity, and local know-how.

📧 Email: hotthomessells@gmail.com
📞 Call/Text: 909-296-6668
🌐 Website: www.HOTTHomesSells.com