(TJV NEWS) Amid widespread economic unease, homebuyers across the U.S. are hitting pause—and in many cases, pulling out of deals entirely—over fears that the housing market is headed for a sharp downturn, Daily Mail reports.

Florida investor Joel Efosa told Daily Mail he believes a crash similar to 2008 is looming. “This is a perfect storm for an eventual market crash due to this affordability crisis,” he said. Efosa, who typically buys fire-damaged properties for redevelopment, recently backed out of a teardown deal in Orlando after his builder demanded a 25% contingency due to tariff-related uncertainty. “The deal became totally not worth the risk,” he explained.

Financial anxiety exploded last week after former President Donald Trump announced sweeping tariffs, triggering a sharp decline in U.S. stock values. More than $6.6 trillion was wiped from the markets, Daily Mail notes, causing retirement accounts to shrink and homebuyers to rethink major financial decisions.

Although a 90-day delay on the tariffs temporarily calmed Wall Street, the damage had been done. “They’re hearing the words ‘tariffs’ and ‘recession,’ and it’s making them nervous,” Detroit-based Redfin realtor Desiree Bourgeois told Daily Mail. She said younger buyers in particular are now afraid to invest in real estate that could depreciate if the economy worsens.

That fear has rippled through Florida’s housing market. Daily Mail also spoke with St. Petersburg broker Robert Washington, who said a homebuilder client scrapped a deal to buy a vacant lot. “They mentioned that the tariffs have caused uncertainty regarding their building material costs,” Washington explained.

Beyond tariffs, skyrocketing mortgage rates are fueling the chill. According to Redfin, average rates jumped to 6.95% in early April—the highest in six weeks—while the median monthly mortgage payment has soared to an all-time high of $2,813.

“The only thing that’s certain about mortgage rates and the housing market right now is extreme uncertainty,” Redfin economist Chen Zhao told Daily Mail.

As the market cools, concerns about a full-blown crash are growing. CoreLogic data cited by Daily Mail identifies five U.S. metro areas most at risk for home price drops in 2025, with Florida heavily represented. Winter Haven, Tampa, and West Palm Beach are on the list, along with Phoenix and Tucson, Arizona—each with over a 70% chance of experiencing price declines.

Florida’s market, Daily Mail adds, is being dragged down by falling demand and a rising number of residents looking to leave the state altogether.

As Efosa put it plainly to Daily Mail: “I will be one of the smart ones waiting on the sideline to buy at the right time—not at the top of the market.”