Uncle Sam and the Housing Market

The government is temporarily closed for business, and unless you live under a rock {in which case Real Estate related discussion may not be your thing, anyway} you may be wondering how this will affect the current housing market. A housing market, by the way, that is not only well on its way to recovery but considered to be in a fairly robust state of health by many economists.

I’ve come across a couple of sensible responses to the government shutdown and how this might play out in the market, and I’d like to share them with you.

Lawrence Yun, Chief Economist for the National Association of Realtors, recently referred to the government shutdown as, “an artificial obstacle to the [housing] recovery.” While Yun warns of the detrimental effect a long term shut down may have on the housing market, much of the power the shutdown has over the national Real Estate market is a head game. I believe the United States government will be back online soon, and it is up to American consumers to choose: will we be ostriches and bury our heads in the sand out of fear and frustration, or will we keep calm and carry on with the business of buying and selling  – as it pertains to Real Estate and other commodities?

Yes, but what about the nitty gritty details of Home Lending, you ask? Herein lies the rub: if our elected officials aren’t able to put on their big boy {and girl} pants before October 17th, the paperwork, and details of Fannie/Freddie involvement in lending may become a bit of a sticky wicket. “But I don’t see this grinding the housing market to a halt,” says Michael Larson, an analyst with Weiss Research. “It’s not a situation where you call J.P. Morgan or Wells Fargo and no one’s there to answer the phone.”

So what should you do if you are buying, selling or considering either of these two options? PANIC!! Only kidding! But In all seriousness, folks: CALL A REALTOR. You can be paralyzed by What-If-Syndrome, or you can talk to an expert who knows the state of the market and potential hang ups to your current or future transaction and can guide you sensibly through it.

Call me or drop a line. I’m ready to listen to your Real Estate needs and concerns, and I have no plans to bury my head in the sand anytime soon.


Jack Meyers
Twitter: @jackestate



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