By now you've seen plenty of headlines about tariffs and interest rates. I've been getting the same question from a lot of people: What does this actually mean for real estate? That is what this month's newsletter is about.

Additionally, my family and I recently drove back down to L.A. from Monterey Bay via the recently re-opened Highway 1, and am including a couple of photos from that amazing trip.

As always, if you have any questions and/or I can be helpful to you, please do not hesitate to email or call; you can also take advantage of the complimentary tools I make available on www.sarrowrealestate.com.

Jonathan

818.469.5309 | jonathan@sheishoperealty.com

How Tariffs Impact Real Estate

Building Materials, Appliances, Fixtures, HVAC Components

Tariffs on steel, aluminum, lumber, and imported building materials drive up the cost of new construction and renovation. Per the U.S. Census Bureau March 2026 report, building permits are down 7.4% YoY, meaning higher tariffs are being baked into future planning.

Rising material costs also mean renovation and repair bids are coming in higher than they were a year ago, and supply chain unpredictability can impact contractor timelines. Expect potentially longer timelines and less room to negotiate on pricing.

Whether you are an existing homeowner needing renovations or repairs, or planning a fix and flip, it is critical to build in time and cost considerations over the next few months.

Where Interest Rates Stand and Purchase Planning

Fed Holds Interest Rates Steady But Divided on Future Direction

At its April meeting, the Fed voted to keep rates steady, but four votes out of twelve pushed back on signaling future cuts. That division signals even the people setting the rates are not sure what direction rates will take. This likely means continued uncertainty around interest rates. How should buyers be thinking about the short to medium term?

One calculus to consider is if rates drop, demand comes back which creates more competition for inventory and upward pressure on prices.

If rates go up, current buyers are protected from higher rates, and can refinance when rates do go down. Rates moving in either direction has implications; if you would like to chat through your situation, please call me or send me a message!

California Highway 1: Recently Re-opened

Highway 1 is fully open after many years of closures

When we headed back down to Los Angeles from Monterey Bay last month, we took Highway 1 and while we expected it to be a good drive, the views and landscape were truly stunning. Here are just a few pictures from our trip, and I highly recommend making the drive as you never know when the next storm is going to close that fragile ribbon of road clinging to the Pacific Coast. The last pic shows Elephant Seals sunning on the beach, something they only do twice a year!