We'd be very surprised. California carries too much loan volume for lenders to walk away; the binding constraint is insurance, because no insurance means no loan. A lender requires a hazard policy in force before it will fund, so where a home genuinely cannot be insured, financing stalls no matter how much a bank wants the business. That pressure concentrates in higher-risk pockets, brushy hillsides and wildfire-exposed areas, where private carriers decline and buyers fall back on the California FAIR Plan. We've seen a hillside listing where four insurers passed before the FAIR Plan stepped in, and it wasn't cheap. When premiums climb into the many thousands a year, that cost folds into affordability, softens demand, and can weigh on prices in those specific areas. Whether a broader public backstop eventually emerges, along the lines of the federal approach to flood risk, is genuinely uncertain, and we won't predict it. Nobody can promise where insurance markets or home prices go from here. The practical move for you as a buyer: get an insurance quote in writing early in your offer window, before you're committed, so a coverage problem surfaces while you still have room to walk. On the free Roadmap conversation we can help you sequence that so insurance never blindsides your financing.