Tariff Turbulence and NYC Real Estate
- Corey Cohen
- Apr 14
- 2 min read
Amid the rising uncertainty triggered by Trump's aggressive tariff regime, even New York’s luxury market is feeling the pressure. In a striking example from Lenox Hill, an NYC real-estate agent—who once celebrated a $10.25 million offer for a four-bedroom co-op (I don’t recommend this)—now reports that his clients have backed out of the deal. This cancellation is part of a broader trend among affluent buyers rethinking investments amid fears that sweeping tariffs could dent future home values and market stability.
Trump’s April 2025 tariffs—now imposing a 145% rate on Chinese imports along with a baseline 10% on goods from over 75 countries—are sending shockwaves through the market. With key economic indicators like the 10-year Treasury yield hovering around 4.5%, mortgage rates have become increasingly volatile. On top of that, the construction sector is bracing for higher costs. Recent estimates from industry experts now suggest that tariffs and rising material prices could add roughly $15,000 to the cost of each new condo unit.
Mortgage Rate Mayhem
Mortgage rates, closely tied to the 10-year Treasury yield, have been unpredictable. Rates dipped to 6.62% last week but then spiked to 7% by April 11. As Matthew Graham, chief operating officer at Mortgage News Daily, put it:
“There have been some bad weeks for bonds here and there over the careers of most anyone who’s alive to read these words, but unless your career began before 1981, you just lived through the worst week you’ve ever seen in terms of the jump in 10-year yields.”
This stark observation underscores the unprecedented volatility in the bond market, which in turn is driving mortgage rates to new heights.
Battling for Listing Inventory
In parallel with these market tremors, the fight over listing inventory has heated up. According to a recent Real Deal report, major brokerages like Elliman and Corcoran are launching private exclusive platforms. In contrast, Zillow has taken a hard stance, stating it will not allow agents to list homes on its platform if those homes were featured privately first.
I firmly believe that sellers and landlords deserve the widest possible exposure. Limiting listings to private-exclusive channels risks undercutting our fiduciary duty to secure the best outcome for clients. In an environment where uncertainty reigns, broad exposure is key to achieving optimal sale prices.
Roebling Reads
Remembering Bobby Torre (Eastside Feed)
Beloved host of JG Melon, Bobby Torre, has passed away at 81, leaving behind a legacy that has long warmed the hearts of New Yorkers. His contributions to the city's food and cultural scene remind us that even in times of market upheaval, local legends continue to shape our community.
With global trade policies intersecting with local real estate fundamentals, staying informed—and visible—is essential for navigating the evolving landscape. I’ll be monitoring the changes in the weeks and months ahead and will always be here as a resource.
Best,
Corey Cohen
Founder
The Roebling Group
646.939.7375
@mrcoreycohen
Comments