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How Tariffs and Zillow’s Policy Shift Are Disrupting Real Estate—and What It Means for You

The real estate market is changing—again. But this time, the headlines aren’t just about interest rates or inventory. Two powerful shifts are reshaping the way homes are built, marketed, and sold in 2025 - escalating tariffs on imported goods and Zillow’s ban on pre-market listings.

 

How the Tariffs are Affecting Real Estate 

While most people think of tariffs as something that impacts imported goods like electronics or vehicles, they’re also putting pressure on the housing market—especially when it comes to construction and renovation. Potential, new and extended tariffs on imported materials such as lumber, steel, aluminum, and certain manufactured goods are increasing the cost of building new homes and upgrading existing ones. This means: 

  • Higher new construction prices as builders  pass on material cost increases.

  • Rising renovation costs for buyers looking to fix up properties.

  • Fewer homes available in already-tight markets, as builders hesitate to start projects with unpredictable expenses and resale outcomes. 

While limited supply may support higher sale prices, owners hoping to spruce up their homes may find their renovation budgets stretched thin. As of today, the tariffs have only hit on imports from China, as the proposed tariffs scheduled for April 9th have been delayed by 90 days, however China has responded by raising duties on U.S. goods from 84% to 125%.

 

The broader economic uncertainty is definitely weighing on most of the clients we have been working with in Boston. A recent Pew survey showed that 81% of Americans are worried about tariffs and potential trade wars and 70% fear an impending housing market crash. Higher material and labor costs can mean that price increases in real estate are less about demand and more about supply-side pressures. 

 

This creates a complex, emotionally charged environment. But it’s not all doom and gloom. People still need to move—for family, work, lifestyle, or life stage. Your job isn’t to predict headlines. It’s to make clear, educated decisions based on your goals—and that’s where we can help. 

 

Zillow’s Crack Down on Pre-Marketing

Zillow has announced that they will be banning listings that have been “pre-marketed” —that is, promoted privately before being made available to the public on the MLS. This means that so-called “coming soon” listings which are marketed for longer than 24 hours prior to going into MLS will no longer be allowed on Zillow’s platform. Zillow’s claim is that the change is designed to promote transparency and equal access to listings.

 

Once you know the back story, it’s easy to see why Zillow’s intention may not be as altruistic as it may seem. 

 

Zillow is technically a media site that sells ads and opportunities to connect buyers and sellers to agents, lenders and property management companies - to the tune of $2.2B in profit in 2024. 

 

The (short) backstory is that Zillow was given access to thousands of MLS data feeds for free in 2006 and has found ways to profit hugely from the same audience that gives them of their free data. Real estate agents who are marketing homes for sale pre and off-market could pose to seriously eat away at Zillow’s profitability and web traffic with less listings displayed on their site and less opportunities to sell to agents. 

 

Once a property is on MLS and other sites (such as Zillow) it will publicly display potentially negative stats - days on market, price drops, and on Zillow the “Zestimate” which can actually damage the perception of your property’s value if its far off. (The ZIllow algorithm isn’t perfect and as we always say, “it can’t see inside of your house!”)  

 

Pre-marketing your home provides us with great feedback before we launch a property for sale on MLS. It allows us to test an aspirational price or validate a pricing strategy privately before listing on the MLS. We have the analytics and full control over what is displayed on our pages. Additionally, pre-marketing while we are preparing the home for sale helps to create interest and anticipation (while we gather valuable data!) before it’s ready to launch. This allows us to have less days on market, which has a strong correlation with the sales price - typically more days on market the lower the price.  

 

What we want our clients to know this - real estate doesn’t belong to the tech platforms. It belongs to the people - the agents and clients who move markets. It’s your listing and your choice. We are here to help you set the best strategy. 

 

As a buyer, by working with an agent who is a full time, professional agent, you will have access to plenty of listings - on or off Zillow, pre-market, coming soon. As a seller, your listing will be marketed broadly. We’ll have plenty of data, analytics and feedback on your listing either way. Ultimately, we aren’t here to push the Compass Coming Soon/Private Exclusive agenda or Zillow’s on you. We are here to walk you through the pros and cons of each and help you make an informed decision on the best strategy for your listing. 

The Takeaways - What Should You Do? 

If you’re a buyer:
Stay connected to a full-time agent with deep market reach. The best deals aren’t always public. They’re in private databases, agent networks, and early conversations—well before Zillow gets a click.

If you’re a seller:
Think beyond the open market. Sometimes the best strategy is a full-scale launch. Sometimes, it’s a quiet, qualified off-market deal. Either way, it’s about leveraging data and timing—not reacting to platforms or pressure. We’re here to walk you through the pros, cons and strategies. Right now, small improvements (paint, lighting, staging) are often smarter than large-scale renovations. Strategy, not speculation, is the name of the game.

 

The Bottom Line 

Between global trade policies and platform-level changes, real estate is facing yet another moment of transition. This isn’t the time to panic—it’s the time to get smart.This market rewards people who move deliberately, not reactively. It rewards clarity over certainty, and strategy over speculation. 

We don’t follow the herd, we guide our clients through it.

 

We don’t just list homes, we position them. 

 

We don’t chase clicks, we maximize value. 

 

We know what it takes to win in the middle of all of this. Let’s talk if you want to make sense of what’s happening. 

 

 

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