The government shutdown has ended for now, but may resume in the near future. Here’s how it’s impacted real estate so far.
Selling your Massachusetts home? Get a home value report
Buying a Massachusetts home? Click here for full MLS access
There’s no question about it: The recent government shutdown will have a negative effect on the real estate industry. What changes are occurring now and what could happen in the future? Today we’ll be taking a look.
Many lenders access information from either the IRS or the Social Security Administration in order to verify applicants’ income. This process is currently strained because these government entities are short-staffed and the few remaining workers are still having to handle these services.
Consumer confidence is low.
At the same time, people are still seeking FHA and VA loans. Though these processes are still continuing as normal, staff is also reduced. Because of this, a backlog is building and their services are becoming delayed.
On top of all this, consumer confidence is low: 800,000 people weren’t receiving paychecks, there’s uncertainty about whether the shutdown will resume in the near future, and much more. We can’t necessarily measure the impact of low consumer confidence, but we’re sure the effects will show up in the long term. There’s also a worry that interest rates may begin to fluctuate due to the shutdown.
If you have any questions or need further information, feel free to reach out to me. I look forward to hearing from you soon.
