Wondering how the government shutdown may affect local real estate? You're not alone. Anytime business as usual is disrupted you always wonder what unforeseen consequence may affect you directly. Without question government employees will be affected and we start hearing words like furlough being passed around - furlough is basically a fancy word for leave of absence.
Wondering which government employees may find themselves forced to take a leave of absence come Monday morning?
Likely any employees at non-essential government funded operations will be part of the furlough. Such places as national parks, monuments, passport processing departments, and the National Zoo to name a few. However, public safety essentials shouldn't be affected. You'll still get your mail, you still need to pay your taxes, and the VA Hospital will still be open for patients.
So, what does the government shutdown mean if you're in the middle of a real estate transaction?
This really depends on what kind of mortgage financing is being used and how far along you are in the process. There are some key moving parts within a mortgage financing transaction that could be delayed due to the shutdown; as the employees within various departments may be furloughed until the shutdown is over.
If you rely on social security benefits as part of your income, those benefits will need to be verified and that verification may be delayed due to the shutdown as the Social Security Administration will have many furloughed employees. Furlough of employees may affect the same type of verification with tax returns, as well, as the Internal Revenue Service will be affected. Yes...many delays.
If the government shutdown isn't remedied quickly you will most certainly see delays due to furloughed employees if you are getting an FHA Loan or VA Loan. As HUD oversees the Fair Housing Administration and the Department of Veterans Affairs these government agencies are estimated to have some 8,500 employees that will be furloughed. So, it's easy to see how these delays will come about.
In October 2013 the government was shutdown for a couple of weeks. The real estate market, as far as values and demand, was minimally affected by that particular shutdown and rebounded quickly. There's no reason to believe this current shutdown will be any different. Delays are to be expected and should be planned for accordingly with your real estate agent, but shouldn't prevent the buying or selling of real estate in our local market.
If you are looking for a seasoned real estate group to handle the sale of your property, or to assist you in purchasing a home, please consider The John & Tonic Group with Keller Williams Realty Southwest as your local Las Vegas & Henderson resource. With over 25 years of full time real estate experience you will find the professional representation needed to maximize your equity and get you the home you are looking for in this competitive market.
