As we stand between week 4 and 5 of the longest government shut down in U.S History, both sides of the house are attempting to compromise on the remaining 7 bills our president wants to pass. In the meantime certain government divisions have slowed or ceased, The following agencies have been temporarily shutdown:

 

Affected agencies

  • Department of State.
  • Department of the Treasury.
  • Department of Justice.
  • Most of the Department of the Interior.
  • Department of Agriculture.
  • Department of Commerce.
  • Department of Housing and Urban Development.
  • Department of Transportation.

 

What does this mean for real estate prices though?

The national association of realtors (NAR) has reported a 6.4% decrease in home sale volume over the last 4 weeks.  Which coincidentally lines up with the beginning of the government shutdown.  This could be season related or an anomaly, but home sales do typically fall during times of economic strife.   With almost 800,000 government employees out of work, that accounts for roughly 9% of the U.S home buying market in the last month.  Buyers and sellers who have been directly influenced by the shutdown are being put on hold and slowing the market.  Areas where there are a high volume of government employees, like Arizone , Colorado, Alaska and New Mexico are experiencing the worst of it.

What About Buying During The Shutdown?

If you have the money and are unaffected by the shutdown you could be in luck.  Our mortgages have been moving along without problems from the IRS or FHA / VA, as a result our buyers are experiencing a temporary “down market” that is a benefit to buyers.  Nationally though, many lenders have had to slow or cease lending due to tax transcripts or approval from the governing agencies, our lenders are issuing these mortgages themselves in an effort to continue production and make it up on the back end.

This means that we are in a great market for buyers to get Pre-approved .  Historically when we see times of economic struggle we see inflation slow down or cease, this shutdown is a microcosm of economic uncertainty that is providing home buyers with an excellent time to buy at a reasonable cost.  With Mortgage rates not inflating as expected we see a unique opportunity to provide low fixed rate mortgages that our buyers can capitalize on for years to come.

How Do I Buy?

That is the easy part, you can Contact me directly and talk about your qualifications, or talk with a Qualified real estate agent that can point you in the right direction.  Either way you are experiencing a prime chance to get the home you want for a reasonable cost and at a reasonable payment.

Other options

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Justin Scott

Loan Officer

NMLS 878581

  1. C) 920-530-4484
  2. O) 920-490-8823
  3. F) 920-490-8967

Executive Mortgage

NMLS 271650

909 . E Walnut Street

Green Bay WI 54301