What does a government shutdown mean for Baltimore real estate?
It can mean quite a bit.
First, the IRS is closed, so if a buyer’s bank needs ANY documentation from the IRS that the buyer does not have in their possession, then they are stuck until the government reopens before that buyer can close on a house.
Locally, we have a large number of those furloughed employees, so if any of them were in the middle of buying a house – well, they don’t currently have the income, and they can’t have their employment verified – so, the likelihood is they can’t close on a home during this time.
FHA – HUD has an emergency contingency plan, so many single family home purchases should be able to go through with FHA-backed loans. The FHA is short-staffed, however, so delays would not be unusual.
USDA loans cannot be processed, and those are used regularly in rural zip codes around the Baltimore area.
Thank you to the National Association of Realtors for the update on this current government shutdown.
There are many implications in the Baltimore real estate market due to the government shutdown. We can only hope that a resolution can be passed quickly.