The ever approaching debt ceiling deadline looms closer and closer each day. Still in negotiations, Congressional government is still opening government agencies in a piecemealed fashion. I am glad portions of the government have reopened and people can receive benefits, have needed treatments, attend war memorials, and visit the national parks but it still bewildering on why some divisions, IRS and USDA, are still not opened.
Why is the government shutdown bad for real estate?
- People may place home-buying and selling plans on hold.
- USDA cannot approve buyer’s loan packages because their employees are furloughed.
- Unable to obtain 4506Ts for tax income verification (affects an array of home loan programs).
- Sellers may stop accepting offers from USDA buyers.
The real estate industry needs manageable growth, in both buyer and seller segments, to stay healthy, to keep everyone working that this industry employs, and to continue building long term consumer confidence. But it isn’t just me in little ole Snohomish County, Geordie Romer of Leavenworth writes:
1. The effects of the shutdown on consumer confidence will depend quite a bit on the length of the shutdown. Of course, if the government defaults on its debts and doesn’t raise the debt ceiling then we will likely see an even greater collapse of consumer confidence.
There is a huge correlation between consumer confidence and the number of homes that sell in Leavenworth. When confidence is low, buyers aren’t buying vacation homes in Leavenworth.
It really confunds me why officials choose this time for political positioning. There has been plenty of time to bargain and using this time as to defund the Affordable Care Act at the economy’s expense. Whatever the case, Snohomish County sellers and buyers will feel the brunt one way or another. #stupidgovernment
Government Shutdown and Real Estate Tweets
You have to be joking, right
Government shutdown puts a wrench in housing market http://t.co/gJR3oVZ2Wd The shutdown is delaying home sales and approval of loans b...— Luda Rosenbaum (@LudaRosenbaum) October 12, 2013
Hawaii, Idaho, and Alaska 3 of Top 10 states affected.
Poll: What Impact on Real Estate will the Shutdown Have?
Here is a link to the poll http://poll.fm/4g99p with the current results being: