The Government Shutdown Won’t Freeze the Long Beach Housing Market

Lately, there’s been a lot of talk by my neighbors and clients about the government shutdown — and if you’re thinking about buying or selling a home in Southern California, it’s natural to wonder how it affects our market – especially in Long Beach.

Real Estate Doesn’t Stop

Even in times of political gridlock, life keeps moving — families still relocate, jobs still change, and people still chase the dream of homeownership. While some parts of the process may slow down slightly, the Long Beach real estate market has more or less adjusted as best as possible…and keeps turning.

Here’s what typically happens during a government pause:

• Certain loan programs may move slower. FHA, VA, and USDA loans — which make up about 25% of all mortgage applications — can experience temporary processing delays as agency staff may be furloughed.
• Flood insurance approvals may take longer. The National Flood Insurance Program sometimes pauses, affecting closings in designated flood zones.  Certain parts of Long Beach would feel the pressure (i.e. Naples, Belmont Shore and The Peninsula)
• Private-sector deals keep rolling. Conventional loans, escrow services, and local appraisals continue as normal.

The Market Always Bounces Back

In the last major government shutdown at the end of 2018, sales slowed for just a short period. Once the government reopened, activity surged right back as delayed transactions cleared.

For buyers and sellers here in Long Beach, that means this:

If you’re already under contract, you might see a brief delay — days, not months. If you’re just entering the market, this moment could actually give you an edge.
When uncertainty causes some people to pause, savvy buyers face less competition, and prepared sellers stand out. These small windows often reward those who stay the course.

This Isn’t a Market to Fear - It’s a Moment to Focus

Southern California real estate isn’t dictated by politics in Washington — it’s driven by lifestyle, opportunity, and people ready to make moves.

If you’re unsure how today’s headlines might affect your real estate plans you’ll need to move past the noise, spot the opportunities, and make a confident decision whether a move fits your goals now – regardless of the chaos in Congress. 

Follow me for real-time insights, grounded advice, and the truth about what’s really happening in our housing market.