Ed Parcaut and Mike Kelly cover the California FAIR Plan rate hike that takes effect today and why sellers keep cutting prices.

In this episode:
• California FAIR Plan: an average 29.1% dwelling rate increase for more than 675,000 policyholders, starting today, October 15, on new and renewal policies. Those with higher wildfire risk can pay more, and some policyholders will pay less (California FAIR Plan statement on California Department of Insurance approval). Example: at 29.1%, a $3,000 premium would be about $3,873. Your rate will vary.
• Get the insurance quote before you fall in love with the house, and if you're selling, think about offering to cover a year or two of the buyer's insurance (Ed's opinion, not financial advice.)
• Stanislaus County in September: 320 price cuts and 18 price increases, almost 18 cuts for every increase, with active listings up 11% from August (Realtor.com data via FRED)
• Wholesale inflation: producer prices up 1.3% for the month, the biggest jump since March 2022, and up 6.3% over the year (BLS producer price index for September)
• Retail sales up 0.8% in September (Census Bureau advance estimate). Initial jobless claims at 199,000, up 1,000 from the week before, and continuing claims at 1.71 million (U.S. Department of Labor)
• The crash came in sales, not prices. Why the median price can drop while home values hold
• The median first-time buyer hit a record age of 40 (NAR 2025 Profile of Home Buyers and Sellers). Later in life, a reverse mortgage for purchase can be worth a look (Ed's opinion, not financial advice.) Reverse mortgages are for homeowners 62 and older. The home must be your primary residence, you must keep paying property taxes, insurance and upkeep, and the loan is due when you leave the home.
• Wire fraud warning: call your escrow or title officer at a number you already know before you wire any money (Ed's opinion, not financial advice.)

No cheerleading. No doom. Just the truth, with a little seasoning.
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Edward R. Parcaut, NMLS #235384, CA DRE #01077454. Lending For Living Inc, Real estate broker, California Department of Real Estate, NMLS #855360, CA DRE #01907016. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. NMLS Consumer Access: www.nmlsconsumeraccess.org