So the government shutdown is over. Finally! And if you're in the market to buy or sell a home, you're probably wondering what this means for you. Does it change anything? Will home prices suddenly shift? What about interest rates?
Let's cut through the noise and talk about what that actually matters.
The Direct Impact: Getting Back to Business
Here's the immediate effect: things that were stuck are now unstuck.
During a government shutdown, certain real estate transactions basically hit pause. FHA loans? Delayed. USDA loans? Same story. Tax return verifications needed for mortgage approval? Good luck. The IRS wasn't processing those requests, which meant some buyers couldn't close on their homes even though they were ready to go.
Now that the government's back up and running, these processes can move forward again. If you were waiting on any of these government-backed services, you can breathe a sigh of relief. The paperwork backlog will clear out over the next few weeks, and transactions that were frozen can finally close.
That's the practical stuff. But what about the bigger picture?
Home Prices: Don't Expect Much Movement
If you're hoping the end of the shutdown will somehow trigger a drop in home prices, I've got to be honest with you – that's probably not going to happen.
Home prices are driven by supply and demand, not by whether the government is open or closed. And right now, in most markets, we still have more buyers than available homes. That fundamental imbalance doesn't change just because Congress managed to pass a funding bill.
What could affect prices? Interest rates, job growth, new construction, local market conditions – those are the factors that actually move the needle. A government shutdown that lasted a few weeks isn't enough to shift those underlying dynamics.
Sure, if a shutdown dragged on for months and started causing serious economic damage, that would be different. But a typical shutdown? The market barely notices.
Interest Rates: Also Pretty Much Unchanged
Same story with interest rates. The Federal Reserve sets the course for interest rates based on inflation, employment data, and overall economic health. They're not adjusting their strategy because the government shut down for a little while.
Now, if the shutdown had created enough economic uncertainty to spook investors, you might have seen mortgage rates dip slightly as people moved money into safer investments like bonds. But we're talking about small, temporary movements – nothing that would fundamentally change your borrowing costs.
The bigger factors affecting your interest rate? Your credit score, your down payment, the type of loan you're getting, and the overall direction the Fed is taking the economy. Those matter way more than whether the government was open last week.
The Real Lesson: Timing the Market Is a Fool's Game
Here's what Mike Oddo, CEO of HouseJet, wants you to understand: "People waste so much energy trying to time the market perfectly. They wait for rates to drop another quarter point. They wait for prices to come down. They wait for the 'right moment.' But here's the truth – you need to sell when it's the best time for you, not when you think it's the best time for the market. Life doesn't wait for perfect market conditions."
He's right.
Think about it. Are you going to put your life on hold – delay a job opportunity in another city, stay in a house that's too small for your growing family, or keep a property you can't afford – just because you're trying to game the market? That's not a strategy. That's just stress.
The best time to make a real estate move is when it makes sense for your life and your finances. Can you afford the move? Does it solve a problem you're facing? Does it position you better for the future? Those are the questions that matter.
What HouseJet Recommends
If you've been sitting on the fence about buying or selling because you were worried about the government shutdown or waiting for some magical perfect moment, here's what we suggest: Stop waiting and start planning.
Get your finances in order. Talk to a lender about what you can actually afford. If you're selling, get a realistic assessment of your home's value in today's market. Make decisions based on your actual situation, not on speculation about what might happen with interest rates or home prices next month.
The government shutdown is over. The market continues doing what it always does – responding to supply, demand, and economic fundamentals. The question isn't what the market's going to do next. The question is what makes sense for you right now.
And if you need help figuring that out? That's exactly what we're here for.