With Congress failing to pass funding legislation by September 30, the federal government shut down on October 1.
Will most home sales and closings continue? Yes. Most transactions will still move forward. However, REALTORS® should prepare clients for potential slowdowns in loan processing, appraisals, and flood insurance.
Do all federal government housing-related programs stop during a shutdown? No. While many departments face reduced staffing in a limited capacity with “essential” services, the most critical housing and mortgage programs retain their core functions. However, delays are common in programs that require staff involvement.
What happens to Federal Housing Administration (FHA) single-family loans? Most FHA single-family home loans will continue to move forward without interruption. New FHA single-family loans can still be endorsed during a shutdown.
What about FHA condominium projects and other approvals? Some FHA programs — such as Home Equity Conversion Mortgages (HECMs) and Title I loans — are paused. Activities requiring U.S. Department of Housing and Urban Development (HUD) staff discretion, like manual underwriting for new condominium project approvals, are likely delayed until the government reopens. C.A.R. members should consider checking HUD’s list of already-approved condominium projects.
How are conforming mortgages from Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) impacted? The GSEs generally retain their core functions during a shutdown. However, some services that depend on other federal agencies may be affected. For example, Internal Revenue Service (IRS) tax transcripts may be unavailable, requiring lenders to obtain transcripts and close later.
Can active-duty service members and Veterans still apply for VA home loans? Yes. U.S. Department of Veterans Affairs (VA) loan guarantees remain available, and lenders can continue processing applications. However, reduced staffing during a shutdown may cause delays in appraisals, certificates of eligibility, and underwriting support.
Can my client still apply for flood insurance? Applications for new or renewed federal flood insurance policies cannot be issued by the National Flood Insurance Program (NFIP) during the shutdown. Existing NFIP policies remain valid until they expire, and claims will continue to be paid while funds last. Policies may also be transferred from seller to buyer during a transaction. If your clients are seeking an immediate flood insurance policy, private insurance remains an option that is unaffected by the shutdown.
Courtesy of California Association of REALTORS.
Julia Huntsman, REALTOR, Broker |
http://www.abodes.realestate |
562-896-2609 |
California Lic. #01188996
As of March 1, 2026 (note date change) a new rule issued by FinCEN (Financial Crimes Enforcement Network) takes effect. This rule applies to real property of one to four residential units, vacant land intended for construction of residential of one to four residential units, where the buyer is a legal entity or trust,and the buyer is making an all-cash purchase or financing the purchase through a bank, etc., that does not have an independent money laundering reporting obligation.
Information required to be collected by a "reporting person" which typically is the escrow or title company in the transaction, will include legal names, dates of birth, dates of execution of trusts, addresses, dba's, citizenship (for trustees and beneficial owners), taxpayer identification numbers, and if needed account number and financial institution name from which payment is made.
Additionally, there will probably be an extra charge in escrow for collecting this information which according to one escrow officer could be as much as an additional $700. California Association of Realtors is including this transactional information now, so that any properties already begun prior to December 1 will be covered. This information is in a separate required form now, but is currently planned to be incorporated into the standard residential purchase contract in June, 2026.
And, should all necessary information not be delivered as requested on a timely basis, the Reporting Person will not close escrow, and any party not providing this information may be in breach of contract and the other party may be entitled to cancel.
While more regulations and forms to sign in escrow are met with a tired groan, bear in mind that "in 2025, financial crime is more sophisticated than ever, costing the global economy up to $2 trillion annually, according to the UN Office on Drugs and Crime ." https://www.moodys.com/web/en/us/kyc/resources/insights/aml-in-2025.html, involving cryptocurrency, real estate transactions, and other ways of laundering money.
NOTE: The implementation date has changed from December 1, as posted in the original article, to March 2, 2026. Article links may still have December 1 date.
Julia Huntsman, REALTOR, Broker |
http://www.abodes.realestate |
562-896-2609 |
California Lic. #01188996
The 2026 Housing Market Forecast is out, and the overall prediction is that the median price will continue to inch up from the 2025 median of $873,900 to a 2026 median of $905,000.
Resale volume is still under the 2021 level, and in 2026 will be projected to 274,400 units, well under the 444,500 level of 2021, but ahead of the 2025 level of 269,000 units.
Per the California Association of REALTORS:
"Inflation will likely
pick up in the next 12 months, but the annual average Consumer Price
Index (CPI) for 2025 will dip slightly to 2.8 percent, before bouncing
back up to an average of 3.0 percent next year. The average 30-year,
fixed mortgage interest rate will moderate slightly to 6.6 percent in
2025 but will decline more solidly to 6.0 percent in 2026. While next
year’s projected average for the 30-year fixed mortgage interest rate
will still be higher than the levels observed in the few years prior to
the pandemic, it will be lower than the long-run average of nearly 8% in
the past 50 years." (Per Bankrate: September 18, 2025, the current average 30-year fixed mortgage interest rate is 6.23%.)
Housing
affordability is expected to inch up to 18 percent next year after
edging up to a projected 17 percent in 2025 from 16 percent in 2024.
“As economic uncertainty
begins to clear up in the next 12 months and mortgage rates start
declining more consistently in the upcoming quarters, housing sentiment
will see some improvement in 2026,” said C.A.R. Senior Vice President
and Chief Economist Jordan Levine. “However, mounting headwinds such as
the ongoing trade tensions between the U.S. and its trading partners,
the home insurance crisis, and a potential stock market bubble will
remain challenges for the housing market in upcoming year,” Levine
continued.
The complete Market Forecast will be posted soon on the CAR website.
Julia Huntsman, REALTOR, Broker |
http://www.abodes.realestate |
562-896-2609 |
California Lic. #01188996
Another agent I'm acquainted with in my market told me a story the other day about a buyer she had been working with who enjoyed using the benefits of AI to find out information about his transaction, i.e., analyzing the contract he had signed with the seller
Marina Vista Park
. The buyer was satisfied with getting all his information, at that point, by entering prompts and getting answers back about the contract, in spite of his agent's request to personally meet with him and review, which he refused. But according to the most recent annual buyer profile mentioned below, this is not what most buyers are looking for in an agent. Most people want the guidance and experience of their agent, to say nothing of the fact that a buyer broker agreement has been signed and this knowledge and duty is what the buyer is paying the agent for. There are myriad issues in a transaction that may not be accounted for if the right prompt isn't entered into the AI chat. AI is becoming more and more a very useful tool, but does it handle absolutely all situations?
The "2024 Profile of Home Buyers and Sellers Highlights" by the National Association of REALTORS®, provides an annual overview of recent home buyers and sellers who completed transactions between July 2023 and June 2024. This edition highlights the challenges faced by buyers due to a housing affordability crisis, limited inventory, and high mortgage interest rates (averaging 7.02% and peaking at 7.79%).
The following is summarized (about buyers) from the report:
Characteristics of Home Buyers:
Demographics:
Median buyer age increased to a peak of 56 (up from 49 last year).
First-time buyer median age: 38 (up from 35).
Repeat buyer median age: 61 (up from 58).
Married couples: 62% (increased). Single females: 20% (slightly increased). Single males: 8% (decreased). Unmarried couples: 6% (decreased).
Sexual Orientation: 88% heterosexual, 3% gay/lesbian, 2% bisexual.
73% of buyers had no children under 18 in their home (highest recorded).
Multi-generational Living: 17% purchased multi-generational homes (all-time high), primarily for cost savings (36%), elder care (25%), or adult children moving back/never leaving (21% each).
Reasons for Purchase:
22% desired to own a home of their own (64% for first-time buyers).
43% said the timing was right; 23% had to purchase.
Distance Moved: Median distance between previous and new home was 20 miles (down from 50 in 2022, but still elevated from 15 miles in 2018-2021).
Location: 45% purchased in a suburb/subdivision, 23% in a small town, 16% in an urban/central city (highest since 2014).
Neighborhood Factors: Quality of neighborhood (59%), convenience to friends and family (45%), and overall home affordability (36%) were most important. Convenience to job declined to 34% (from 52% in 2014).
Expected Length of Ownership: Median of 15 years; 25% expected to never move.
Based on the "2024 Profile of Home Buyers and Sellers Highlights" report, the average home buyer primarily wants an agent who can:
Help them find the right home: This was the top reason, with 49% of buyers seeking assistance with this task.
Negotiate terms of sale: 14% of buyers wanted help with negotiations, and 11% specifically for price negotiations.
Assist with paperwork: 7% of buyers sought help with managing the necessary documentation.
Understand the home-buying process: Over half of all buyers (53%) found their agent invaluable in helping them understand the complex buying process, a figure that jumps to 80% for first-time buyers.
In summary, buyers seek agents who are knowledgeable, responsive, honest, possess good people skills, and can effectively guide them through finding a suitable home, negotiating the deal, and handling the intricacies of the transaction.
I have been helping buyers since 1994, the market and market conditions have gone through many growth phases since then, and I have the advantage of knowledge and experience. Just let me know how I can assist you!
Julia Huntsman, REALTOR, Broker |
http://www.abodes.realestate |
562-896-2609 |
California Lic. #01188996
The Long Beach average sales price for a single family home has been jumping around since the beginning of the year:
January - $1,132,231
February - $1,058,802
March - $1,188, 403
April - $1,070,180
May - $1,069,937
June, $1,266,298
July - $1,089,619
August - $1,160,302
Looking for a lower price? the neighborhoods in 90810, Westside and Upper Westside, averaged $760,200 in August; 90804, Rose Park and Zaferia areas, was $750,400; 90806 in the Wrigley area was $700,555;
The overall August inventory level is up to 3 months now, and selling price to original list price ranges from 98%-100.3%. Active listings have increased since January (269) to 327 in August. An easier time for buyers because there's more inventory, however, considering the higher number of listings in August, there were 128 closed sales, the January market was even slower with 91 closed sales.
While there are still misconceptions among some buyers about how much down payment is needed to buyer, just remember that FHA loans and VA loans are out there and can be very helpful when you don't have 20% down. Try the down payment resource search to assist you -- feel free to contact me with questions about this guide. And for prices in other local markets, take a look at the Market Reports while you're on my website, link below.
There are over 49,000 HOAs in California, and over 14 million people live in California homeowner associations. That's 35% of the of the California population and almost 25% of the total of California homeowners.
Associations are made up most commonly of multiunit condominium buildings, PUD (planned unit developments) with single family housing, or other community apartment (own-your-own) associations, or stock co-operatives, making up a total 5.45 million homes. (Long Beach has all three types.)
If you were represented in the purchase or sale of a property inside of an association by a Realtor, your transactional documents make it clear that the buyer is wholly responsible for reading the CCRs and other HOA documents. Were the CCRs recorded? is the property defined as a "unit" or a "lot"? What are the use restrictions? Has the required balcony/walkway/elevated elements inspection been completed and a report been made to the HOA?
Has the HOA insurance been renewed? PUDs have an HO-3 policy, which is coverage for the entire lot and everything on it. Condominiums, co-ops, OYOs, and other community apartment projects have HO-6 policies, or "walls in" which is the airspace inside the unit (master policies cover the commons areas).
There was a common practice in the past where property managers would charge sometimes excessive amounts for the transfer of HOA documents to a new owner, until a California law was passed stating an additional fee cannot be charged for electronic delivery, but the fact is that there is still a fee charged by management companies for their work time and effort even if delivered electronically.
HOA members are required to follow rules in associations, along with all the laws which govern them and there are many, so if you're considering buying into an association you should do a self-assessment on your fit into this type of living situation. There are other restrictions such as parking, fines for not following the rules, if you can rent out your unit or not, smoking and nuisance issues, can you use the unit for childcare, and is your view protected?
Are you considering a unit located near the community pool? Maybe there will be noise issues at certain times. Know the difference between a Pet and a Emotional Assistance animal, different rules may apply.
Is the HOA self-managed (not unusual in small associations) or does it have a property manager, how well is the association funded (look at the reserve study)?
Many buyers are attracted to HOAs as affordable options in more expensive SFR neighborhoods, they also require some study due to age of the infrastructure, insurance, HOA dues, purchase financing (is it VA or FHA approved?) and other requirements imposed on owners.
Condos are a road to ownership, and if you're a buyer find an agent with HOA experience.
I wanted to take a moment to share some insights on the significant advantages of placing residential property in a California trust, and why this is an important step for both property owners and their heirs. If you own property but do not have a trust, this may be important information for you at this time. This is a rather lengthy post, but one that could be helpful.
Benefits of a California Trust for Residential Property
One of the primary reasons people place their residential property into a trust is to ensure that their assets pass seamlessly to their heirs without the need for a lengthy and costly court process. A California revocable living trust can hold title to your property, allowing it to be distributed according to your wishes upon your passing. If something happens do you want to be the one that makes the decisions of where your assets go or do you want the state to make the decision for you?
How This Helps Heirs
A key benefit for your heirs is that, upon your passing, your property can be transferred directly to them without the delays of probate. Probate, which is the legal process of administering an estate, can take months or even years to resolve. It often involves public proceedings, legal fees, and court delays. By using a trust, your heirs will avoid these complications, receiving their inheritance much more swiftly and privately.
Importance of Keeping Your Trust Updated
It is essential to periodically review and update your trust, particularly if there are significant life changes—such as the acquisition of new property, the birth of a child, or changes in your family dynamics. An up-to-date trust ensures that your current wishes are reflected and that all assets are properly accounted for. Failure to update your trust can lead to unintended consequences, such as certain assets being excluded from the trust, leaving them subject to probate.
Why Probate Court Should Be Avoided
Probate is often a lengthy and expensive process. In California, the cost of probate can be substantial, including court fees, executor fees, and attorney fees, which are generally based on the value of the estate. These costs can quickly eat into the value of your estate, diminishing the inheritance left to your heirs. Furthermore, the probate process can be a public affair, meaning that the details of your estate, including asset distribution, may be accessible to anyone. This can lead to unwanted scrutiny or potential family disputes.
A trust, by contrast, allows for a much smoother, private, and efficient transfer of property. Assets held in the trust are not subject to probate, and your wishes are carried out according to your instructions, without the need for court intervention.
In summary, placing your residential property in a California trust offers significant benefits, including avoiding the hassle of probate, ensuring that your heirs receive their inheritance promptly, and maintaining privacy throughout the process. I strongly recommend that you consult with an estate planning professional to create or review your trust to make sure it reflects your current desires and protects your heirs from unnecessary legal complications. The Los Angeles County Tax Assessor has additional information to help you: https://assessor.lacounty.gov/real-estate-toolkit/wills-and-trusts -- find out more about trusts and tax savings.
PROBATE
Many people do not realize how much probate fees may impact an estate. Let's dive into the probate costs in California for an estate valued at $900,000.
In California, probate fees are determined by a statutory fee schedule, which is based on the gross value of the estate (before debts and expenses). These fees are set by California's Probate Code (Section 10810) and can be quite significant, especially for larger estates.
Example: Probate Fees for a $900,000 Estate
Probate Court Fees*:
First $100,000 of the estate: 4% of the value.
Next $100,000: 3% of the value.
Next $800,000: 2% of the value.
Here's how the breakdown works for a $900,000 estate:
First $100,000: 4% of $100,000 = $4,000
Next $100,000: 3% of $100,000 = $3,000
Next $700,000 (for the remaining value over $200,000): 2% of $700,000 = $14,000
Total Probate Fees for the Estate
Adding these amounts together: The total probate fees for a $900,000 estate would be $21,000.
Additional Costs to Consider
In addition to the statutory probate fees, there are other potential costs that can add up:
Executor’s Fees: The executor (or personal representative) of the estate is entitled to a fee, which is the same as the attorney's fees (based on the same statutory schedule). For a $900,000 estate, that’s an additional $21,000 in fees.
Attorney’s Fees: Probate attorneys are usually compensated based on the same statutory fees as the executor. This means that the total legal costs (for both the executor and the attorney) could be around $42,000.
Other Court Fees: There may be additional costs for filing fees, bond fees (if a bond is required for the executor), and other miscellaneous administrative costs.
Time: The probate process in California can take anywhere from 6 months to over a year, depending on the complexity of the estate, and during this time, your heirs may not have access to the property or other assets.
For an estate valued at $900,000, the total probate costs (including court fees, executor fees, and attorney fees) could easily reach $42,000 or more. These costs can significantly reduce the value of the estate and cause delays for the heirs. That's why many people choose to place their property into a trust to avoid the lengthy probate process and the associated expenses. *See California Probate Code Sec. 10810 for a complete description of fees.
If you'd like more detailed information on how to sell a trust property or a property that is going into probate, or have any follow-up questions, feel free to ask. Note: I am not an attorney, but as a Realtor I can provide information required to complete the listing and sale of a property in a trust or probate. For legal handling of setting up a trust, or what to do if you are an heir to a property, please consult a trust/probate attorney.
This year-to-date, published every month in the third week, shows county/city market information. In this case, the screenshot is narrowed to a few cities which include Long Beach single family housing.
The number of single family houses sold by the end of June in Long Beach came to 505 SFRs, which is 1% more volume than same time last year. The median price growth increased by 7%, and days on market was 23. Sales over list price was 47%, which is how many homes sold this year sold over list price.
The top line is the total number for Los Angeles County for the month of June.
This dashboard includes all counties in the state, and cities in each county -- it's available if you'd like to request the information. This is a California Association of Realtors (C.A.R.) publication, and I can make it available to you on request.
Commercial space station model- Photo: Thomas R Cordova
Vast is building an 189,000 square foot campus neat the Long Beach Airport, to create and launch the next commercial space station. The company now has a 950 person workforce, starting from 40 in 2021.
This is an ideal time to search out the area for a new home to be near this latest addition to Long Beach industry and economy.
If you're in the market, or just want to find out more, it's an ideal time to start laying the foundation.
Check out Long Beach zip codes, including 90808, 90815, 90814, 90803, for homes on the market. A quick search is on my website below at the property search, or contact me for more buying information!
