Real Estate News

Whats the Real Impact of the Government Shutdown on Real Estate?


Written By: Jaymi Naciri
Sunday, January 20, 2019

ldquo;An NAR survey of 2,211 members found 75 percent had no impact to their contract signings or closings. However, 11 percent did report an impact on current clients and 11 percent on potential clients,rdquo; said the National Association of Realtors. Among those impacted by the shutdown, 17 percent had a closing delay because of a USDA loan.rdquo;

The most impacted areas of the market surround:

Buyer uncertainty

Consumer confidence is always a topic of conversation when it comes to real estate, and with rising interest rates and a roller coaster stock market, a government shutdown only makes the issues that much stickier. According to the NAR study, ldquo;The most common impact, at 25 percent, was the buyer decided not to buy due to general economic uncertainty, though they were not a federal government employee.rdquo;

Loan approvals/Closing delays

Whether or not your loan and/or closing is impacted by the government shutdown largely depends on the type of loan you are getting. ldquo;If youre getting a Federal Housing Administration or Department of Veterans Affairs loan, its likely you can expect delays in the underwriting process, and its possible your closing date will be pushed back as well,rdquo; said the Dallas Morning News.

HUD has said that while new FHA loans will be endorsed during the shutdown, ldquo;Some delays with FHA processing may occur due to short staffing.rdquo; In addition, new Home Equity Conversion Mortgages HECM, more commonly referred to as reverse mortgages, are on hold for now.

While the White House has insisted that the Internal Revenue Service IRS process tax refunds during the shutdown, itrsquo;s made no such mandate in regards to helping consumers who need info because theyrsquo;re buying a home. That means that buyers wonrsquo;t be able to requests tax return transcripts, which may be required by lenders, thereby delaying the purchasing process.



Copyright© 2019 Realty Times®. All Rights Reserved

 

Facebook linkedin twitter youtube googleplus instagram
Map SearchClick here for a free Market AnalysisBuyers: Search here for your Dream HomeSubscribe! Sign up to recieve our Newsletter!Real Estate Outlook
Updated: Monday, July 22, 2019


11 Improvements To Your Garage That Will Add Value To Your Home

A Functional Garage Door

Heavy garage doors that must be opened manually are not very app...
> Full Story

How to Handle Loan Conditions

All loans will have loan conditions. But for those not familiar with the approval process, when t...
> Full Story

Marketing to Millennials: Advice for Real Estate Agents

Many millennials are at the age where they want to buy their first homes. When marketin...
> Full Story



Copyright ©2019 - Realty Times®
All Rights Reserved.