Housing market gets hit during government shutdown
Sat, 05 Oct 2013 00:16:53 GMT —
The effects of the federal government shutdown have started to show up in our area's housing market.
According to Radha Herring, a broker at Watermark Real Estate Group, the shutdown has already impacted her agency.
"We actually had two buyers scheduled for the month of October, who just yesterday sent an email saying that they were going to be postponing their trip and putting their search for a second home on hold until they figure out what's going to happen with this whole government shutdown," Herring said.
Herring added that one of her clients works for TSA. After the shutdown happened Tuesday, his job was put on hold temporarily. This also caused Herring's client to put his search for a second home on hold until his employment situation was figured out.
Roy Dunn, a mortgage loan officer at The Optimal Service Group with the Real Estate Mortgage Nework, said first-time home buyers may come across some hurdles when they are trying to get Federal Housing Administration (FHA) loans to close on a home.
"These loans, they're not going to be grinding to a halt, but they're going to be slowed down a bit. And that's unfortunate," Dunn said.
It's unclear how long these delays will be, but experts have been telling their clients it could take up to three weeks.
Those who plan to buy homes should not be the only ones to expect delays; people who are selling their homes should expect things to take longer than usual. For instance, if sellers have a closing date set, it may be subject to change.
At this time, real estate agents are advising buyers and sellers to set different expectations for their real estate needs during the government shutdown.