FIN DeskOriginally published January 23, 2026. This version was rebuilt from a presidential statement, a Houzz release and NAR's December existing and pending home sales reports for the FIN archive, and the facts are as of that date.
Late January brought one less tariff threat and a mixed read from the people who build and design homes. Both shaped how the industry planned the first quarter.
The short version
- Tariffs set for February 1 on several European countries were called off.
- Construction firms expected less business in the first quarter, while design firms expected more.
- NAR said December existing-home sales rose 5.1%, but pending contracts fell 9.3%.
A tariff threat is called off
On January 21 the President said a framework on Greenland had been reached with NATO and that he would not impose the tariffs planned for February 1 on several European countries.
For importers of European furniture and fabrics, it removed a near-term cost. It also showed how quickly tariffs could appear and disappear, which made long buying commitments harder.
Builders cool, designers warm
Houzz's first-quarter barometer showed construction firms' expected business activity falling to 55 from 66, while design firms' expectations rose to 61.
Designers sit closest to furnishing projects. Their optimism was a modest good sign for trade and custom furniture, even as remodeling volume looked uncertain.
Housing closes strong, then stalls
NAR reported on January 14 that existing-home sales rose 5.1% in December to an annual rate of 4.35 million, up 1.4% from a year earlier. The median price was $405,400, up 0.4%, and inventory fell to 1.18 million homes, or 3.3 months of supply.
A week later NAR said pending home sales fell 9.3% in December and were 3.0% below a year earlier, with declines in every region. Its chief economist said the housing sector is not out of the woods yet. Fewer signed contracts in December meant fewer closings, and fewer move-in furniture purchases, in the first months of 2026.
Adjusting, not waiting
Leaders entering 2026 were planning around policy that could change in a week and a home market that closed 2025 strong but started 2026 with fewer signed contracts.
Related on FIN
Sources
- President Donald J. Trump, Truth Social, Statement on Greenland framework and tariffs, Jan. 21, 2026
- Houzz, Construction and Design Pros Enter 2026 with a Measured Outlook
- National Association of Realtors, Existing-home sales report shows 5.1% increase in December (Jan. 14, 2026)
- National Association of Realtors, Pending home sales report shows 9.3% decrease in December (Jan. 21, 2026)
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