Has The Government Shutdown Affected Real Estate Industry?admin / 0 Comments /
As our federal government shutdown enters its third week,the effects have been widely publicized in the media. Effects big and small, local and far reaching are on the minds of all Americans as they wonder how long the shutdown will continue. Real estate professionals and their clients are not immune to the disruption caused by the shutdown. However, its debatable as to how much affect the shutdown has had so far on the real estate industry.
According to an article published by National Mortgage Professional Magazine, written by Phil Hall, industry experts have different opinions on the impact of the federal government shutdown on the housing industry. A survey completed by National Association of Realtors found only 75 of 2211 NAR members reporting the shutdown affected real estate transactions. Less than 20percent of those surveyed reported negative impacts such as delays in closings or closing related processes such as income verification.
However, Zillow did issue a warning after determining “…that federal workers who are not being paid because of the shutdown will owe about$249 million in mortgage and about $189 million in rent payments for January.Approximately 800,000 workers are being furloughed or required to work without pay during the shutdown.”
Experts agree, however, the longer the shutdown continues, the impact will becoming more widespread and far reaching.
Read the entire article.