Epic Real Estate Investing - Trump Tanked Wall Street. Housing Market Next? (warning signs everywhere) | 1463

Episode Date: April 7, 2025

President Donald Trump's recent tariffs have triggered a global trade war, with stock markets plunging and investors fearing a recession. This episode goes beyond the stock market to explore how these tariffs will affect the housing market, potentially impacting your home, investments, and financial future. Matt argues that while tariffs raise material costs, they don't necessarily increase home prices directly. Instead, tariffs may slow down new construction, tightening housing supply and pushing prices up due to high demand. The episode offers actionable advice for navigating this market uncertainty, emphasizing the importance of staying educated, liquid, and creative in financing. Despite the chaos, Matt believes this could be an opportune time for smart investors to capitalize on the evolving market dynamics. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. President Donald Trump just reignited a global trade war. Stocks are tanking, investors are panicking, and everyone's screaming recession again. But while the media is obsessing over Wall Street, they're ignoring the one thing that will hit closer to home than any stock dip, the housing market. I'm pulling back the curtain on what these new tariffs mean for real estate, your home, your investments, your future. Because the media isn't being straight with you.

What Trump just did could send you to the outhouse or the penthouse. And it all depends on one thing. So, let's waste, no time. While Wall Street is freaking out. Right now, the Dow Future is down sharply as global markets take a big hit in response to President Trump's tariffs announcements. The markets have lost trillions of dollars. We're looking at what?

The worst week for stocks since March of 2020? The latest developments suggest that Main Street might already be getting stronger. Here's what I mean. For decades, other countries dumped cheap products into the U.S., crushed the local industry. and made it impossible for American workers to compete. The system is broken. Tariffs aren't just about taxes. They're about fixing the system.

This morning, he took to his social media platform declaring, this is an economic revolution, and we will win. Hang tough. It won't be easy, but the end result will be historic. We have $6 or $7 trillion coming into our country, and we've never seen anything like it. The markets are going to boom, the stock is going to boom, the country's going to boom?

President Trump has never been more confident about his moves last week. And for good reason. You see, within 48 hours of Liberation Day's White House celebration, the plan is already bearing fruit. If you want a surefire investment, go book as many rooms as you can at the Hay Adams Hotel across from the White House

because every foreign trade representative is going to be coming to America to meet with the Trump administration, try to negotiate. Vietnam, Argentina, India, South Korea, and even the EU are changing their tune. They're coming to the table. They're slashing their own tariffs, opening access to over a billion new customers for U.S. companies.

South Korea is ramping up talks. Europe is cutting auto tariffs. Japan is investing hundreds of billions into the U.S., and even China is starting to flinch. Back in the day, McKinley used tariffs to protect American workers. Trump says he's doing the same, making it easier to start families, buy homes, and build communities. Even oil prices are dropping. That means lower inflation. And lower inflation means falling mortgage rates. As they've been on a steady decline, the 15 year just dropped below 6%. So yeah, stocks are in chaos, but under the surface, a stronger American economy might just be forming

already. Now, there are critics, and one reporter even asked, you want them to spend more on defense, which they're agreeing to finally. But how can they do that when their economies are crashing and they are now... No, no, no, no, no, no, no, their economies are not crashing. The markets are reacting. No, their economies are not crashing. Their markets are reacting to a dramatic change in the global order in terms of trade. The only thing we export is services.

I mean, this is just can't continue. We can't continue to be a country that doesn't make things. We have to be able to make things to provide jobs for Americans. So the president rightly has concluded that the current status of global trade is bad for America and good for a bunch of other people, and he's going to reset it. Vice President J.D. Vance echoed the same clarity with, even more fire. During the first Trump administration, everybody said that Trump's tariffs were going to be inflationary back then. What actually happened? We had 1.5% inflation. We had the fastest growing

economy in a generation, and we had the beginning of a manufacturing renaissance in the United States of America. Then, of course, we had four terrible years of the Biden administration. And he broke it down simply. We borrow money from Chinese peasants to buy the things those Chinese peasants manufacture. That is not a recipe for economic prosperity. It's not a recipe for low prices. And and it's not a recipe for good jobs in the United States of America. For 40 years, we have gone down that pathway. We've seen closing factories. We've seen rising inflation.

We've seen the cost of housing so high that most Americans can't afford to buy a home right now. President Trump is taking this economy in a different direction. He ran on that. He promised it, and now he's delivering. Vance called this moment what it is, a necessary course correction. And yes, this is a big change. I'm not going to shy away from it. But we needed a big change, Lawrence.

we cannot keep going down the Joe Biden globalist pathway where we have $2 trillion of peacetime debt and deficits. We have manufacturing disappearing. We need a big change in this country because what we've done, what we did under the Biden administration, it just wasn't working. And for those struggling paycheck to paycheck, he didn't sugarcoat it. We know a lot of Americans are worried. So we are fighting very hard to bring prices down. We're going to have the biggest deregulation in the history of this country. We're doing a lot of things and already have done a lot of things to lower the cost of You heard the president mentioned this yesterday. Eggs when we came in, we're at a 10-year high, and all of a sudden they've dropped 60% just in the two months of the Trump administration.

What I'd ask folks to appreciate here is that we are not going to fix things overnight. We know people are struggling. We're fighting as quickly as we can to fix what was left to us, but it's not going to happen immediately. But we really do believe that if we pursue the right deregulation, we pursue those energy, cost-reducing policies, yes, people are going to see it in their pocketbook. They're also going to benefit from the fact that foreign countries can't take advantage of us anymore. That means their jobs are going to be more secure.

But what happens when all this hits the housing market? That's the part no one's covering and where this gets personal. Here's what most of the media is focused on, and for good reason. Tariffs raise the cost of materials. That part is factual. But higher material costs don't automatically mean higher home prices. Because at the end of the day, a house sells for what the market is willing to pay for it. If it costs more to build, the builder either eats the cost, delays the project, or cancels it.

Buyers aren't going to spend more just because it was more expensive to build. So the likely outcome isn't a spike in prices. It's a slowdown in new construction. And that can tighten supply. We saw this before. In 2018, when tariffs went up, material prices surged. The National Association of Home Builders says today's tariffs could add $9,200 to $25,000 to the cost of a new home. builders, they're already feeling it. Lumber, steel, aluminum, cement. Even appliances and

fixtures are getting more expensive. That doesn't mean homes will sell for more. It means fewer new homes might get built. And tariffs don't just raise prices on materials. They can jam up supply chains too. I mean, if builders can't get materials on time, projects stall or never start. That slows down the pipeline of new housing also. Developers end up paying more to hold unfinished inventory. And fewer homes get finished and brought to market. That's where pressure on home prices might show up, not from the cost to build, but from less being built. Now, here's where it gets tricky. Tariffs, either directly or indirectly, tend to cause inflation. Prices do go up. And what does the Fed do when inflation rises? They raise interest

rates. But wait, haven't rates been trending downward for weeks? Exactly. This is the chaos investors hate. Recession fears pull rates down. Inflation fears push them up. So the market's stuck in this weird limbo. Buyers are confused. Builders are stalling and nobody knows what direction we're heading. This will be a short time of uncertainty and then we'll move back to the prosperity that this president has envisioned that he is so bold and so willing to fight for. We're in uncharted waters. Tariffs are more art, in my opinion, than science. Tariffs are like whiskey. A little whiskey under the right circumstances can be refreshing. Too much wood. whiskey under the wrong circumstances, and you end up drunk as a goat. We just don't know right now,

but we'll know within the next six months. If it works, let's take a dozen. If it doesn't work, the president's going to have to recapabrate. If these tariffs stay in place or worse, increase, here's what's likely to happen. Builders slow way down. New inventory dries up. Prices rise, affordability tanks. And this won't hit every area equally. Cities with strong, low, local supply chains or diverse economies, they may be fine. But markets that rely on imports or are already under inventory pressure, they're about to feel it. So what should you actually do right now? Well, here's the thing. You've got two forces pushing in the same direction. There aren't enough homes for the number of people who want them, and tariffs are about to make new homes even harder

to build. That's the setup. Prices don't rise because materials cost more. Prices rise because supply stays tight while demand keeps climbing. And that's what's happening. So if you're looking for perfect timing, this moment might be the smartest time to jump in. A rising tide lifts all boats. And right now, real estate might be the only boat that floats. First, get educated. Study your local market. And if you're going to take action, make sure you know what you're doing. Because real estate is safe. It's the people that are risky. Two, stay liquid. When rates dip or panic sellers show up, you want to be ready. That's a given. Three, look for the motivated sellers. People always overreact to uncertainty. And I'm sure there'll be plenty

in the comments below, but that's your edge. Four, use creative financing. Don't wait on perfect rates. Don't rely on the banks. Make the terms work for you. Create terms that work for you in the seller. Five, think outside the box, condos, townhomes, even small multifamily. It's not uncommon for these to move first and appreciate fastest in tight markets. You see, everyone's looking left, but the smart money, it's going right. This isn't the time to sit on your hands. Now, look, some people are going to say this is bad advice. Why would you buy when everything is so uncertain? Or better yet, hey, idiot, don't you know the market is about to crash?

I know. Everyone's been saying it to me for years. Eventually, I suppose you'll be right. But now, the near future? No, I'm buying because this is exactly when smart investors do buy. The people calling it crazy are the same ones who said not to buy in 2020 or 2018 or after the crash in 2009. I've been around for a while. I've seen this play out before, and it always ends the same way.

I mean, really, if you bought just before the crash in 2009, like you made a bad decision and bought at the wrong time, you're looking like a genius today, as long as you didn't sell. Every negative Nelly who's telling you not to buy right now wishes they were you when you ignored them the last time. Regardless, the naysayers, they've watched prices go up every single time. If you wait for certainty, you'll always be late. Real estate rewards action, not perfection.

Always has. In a market where inventory is tight and building a slowing down, that's not a precondition for a crash. If we were talking about Xboxes, you'd agree with me, no doubt. But when we talk about supply and demand in the context of the housing market, people get weird. The smart move is to secure cash flowing property while others sit it out. If you want some help with that, I put a document together for you below. But tariffs aren't just a political headline. They are a hit to your wallet.

Sometimes directly, most of the time indirectly, through inflation, through mortgage rates, through the cost of the roof over your head. But this chaos, it creates opportunity. If you stay focused while others panic, you can end up on the right side of this thing. Let the headlines scare the herd. I'd rather be early and rich than late and right. Stay ready, stay sharp.

I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button

when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. We didn't know home for it. We got the cash flow.

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