Government Shutdown Hits Real Estate Industry 26


government shutdownHow will the government shutdown affect the housing market? Well, that’s a good question and like all good questions the answer is “it depends.”

According to a friend at Aristocrat Technologies, it depends on a lot of things but mainly how long this shutdown lasts. If it’s over soon we shouldn’t see too much of an impact. If it drags out . . . well, things could get ugly. Here are just some of the potential snags:

– GSEs will not be available for underwriting or insuring mortgages

– the IRS will be unavailable for employment verification on new loan applications

– GDP may fall by as much as half a percent

And the list goes on and on. This is a lose-lose situation for everyone in the real estate market (really not getting into the health care market, though you can feel free to speak up).

Are the markets strong enough to handle this speed bump? Is the recovery stable enough to withstand any negative effects?

My gut tells me yes, but I can understand if some of you out there are nervous. If you’ve got any questions feel free to post them here and I or some of my well-informed readers will happily help answer them for you.

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