Tariffs, Construction Costs, Real Estate in the Quad Cities: Why Timing is Everything

You might not think much about trade policy when browsing homes or considering refinancing – but the truth is, tariffs are having a direct effect on home values and construction activity across Prescott, Prescott Valley, Chino Valley and Dewey-Humboldt.

If you’re thinking about buying, selling or investing, it’s important to understand how these forces are impacting your timing and financial options.

The Hidden Cost of Building

Recent tariffs on key building materials like steel, lumber and fixtures – many of which are imported from countries like China and Canada – have pushed up the cost of new construction. Builders across Yavapai County are feeling the squeeze. Not only are materials more expensive, but some developments are experiencing delays because of supply chain bottlenecks and rising prices. That added cost is being passed directly to buyers, meaning new homes in many areas are coming to market at higher price points than even six months ago.

Pressure on Existing Homes

In a market like Prescott, where inventory is already limited, this trend has a ripple effect. As new builds become more expensive, demand increases for existing homes, many of which are now selling quickly and often above their asking price. Buyers are competing not just with local demand, but also with incoming buyers from higher-cost areas like Phoenix and California. The result? A steadily appreciating market where waiting too long could reduce your purchasing power.

What’s Happening in Our Communities

In Prescott, the combination of limited inventory and high demand continues to drive price resilience, particularly in established neighborhoods and luxury segments. Buyers are acting quickly, and homes that are priced right don’t stay on the market for long.

Prescott Valley is experiencing its own construction boom, but rising material and labor costs are beginning to close the affordability gap that once attracted buyers in droves. For those considering a move or investment here, acting sooner rather than later could be key to maximizing long-term equity.

Chino Valley remains a desirable option for those seeking more space and value. However, recent infrastructure investments and growing interest from out-of-area buyers are quickly changing its affordability profile. Prices are rising steadily, and new builds are no longer the bargain they once were.

In Dewey-Humboldt, a quieter and more rural alternative, increased buyer activity is beginning to put upward pressure on prices. With lower property taxes and a slower pace, this area offers a compelling opportunity for buyers looking for long-term growth potential without immediate bidding wars.

The Financial Landscape: Still in Your Favor, For Now

While housing prices are trending upward, mortgage interest rates are still historically favorable. That’s good news – but it may not last. As inflationary pressures increase, lenders are keeping a close eye on national policy, including the broader impact of tariffs and global trade instability. A rate increase, even a modest one, can significantly affect your monthly payment and total loan cost over time.

This is where proactive planning becomes essential. Whether you’re a first-time buyer, looking to upgrade or considering investment property, locking in a mortgage strategy now could save you thousands in the long run.

Let’s Build a Smart Strategy Together

As a mortgage professional in Arizona, I understand the nuances of our local market – and how larger economic forces are playing out in real time. My job is to help you navigate all of this confidently. Whether you need pre-approval, want to compare loan options, or just have questions about how current conditions might affect your plans, I’m here to help.

Let’s talk. A short conversation could give you the clarity you need to move forward wisely in a fast-changing market. QCBN

By Jason Konopaske

 Jason Konopaske is a mortgage loan originator, NMLS #999021, Barrett Financial Group, LLC, Corp NMLS #181106.