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What a Government Shutdown Really Means for the Housing Market

There’s been a lot of talk lately about how a government shutdown impacts the housing market. You might be wondering: Is it causing everything to grind to a halt?

The short answer? No.

The housing market doesn’t stop. It keeps moving. Homes are still being bought and sold, contracts are still being signed, and closings are still happening. The difference is that a few parts of the process may slow down a little, but overall, the market continues to function.

Here’s What Typically Happens

Whenever the government shuts down, some federal agencies temporarily close or scale back their operations. That can cause a few hiccups in real estate, especially when it comes to processing certain types of government loans and insurance requirements:

  • “Applicants for FHA, VA, or USDA loans—which account for about one-quarter of all mortgage applications—may encounter significant processing delays due to agency furloughs.” – Selma Hepp, Chief Economist at Cotality
  • “By recent estimates, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown . . .”  – Zillow
  • Flood insurance approvals may also be paused. The National Flood Insurance Program can be temporarily affected, which delays closings in flood zones.

Even with those challenges and delays, most transactions still go through. Buyers keep buying, sellers keep selling, and agents keep helping people move forward.

The Housing Market Usually Bounces Back Fast

And you can see that play out in this data. If you look back at the most recent government shutdown that began at the end of 2018 and lasted for 35 days, sales activity dipped very slightly during the closure but picked right back up once the government reopened.

Data from the National Association of Realtors (NAR) shows existing home sales slowed for about two months, and then rebounded quickly as delayed closings worked their way through the system when the government reopened (see graph below):

a graph of blue and orange linesWhat’s important to note is that the slowdown you see in the orange bars on this graph wasn’t simply due to seasonality in a typical housing market cycle. The sharper, shorter drop in this case lines up exactly with the 35-day government shutdown, and then sales bounced back as soon as it ended.

What This Means for You

If you’re in the middle of buying or selling a home, don’t panic. Most deals will still move forward, even if it takes a few extra days. Jeff Ostrowski, Housing Market Analyst at Bankrate, explains:

“If you’re expecting to close in a week or a month, there could be some slight delay, but I think for most people, it’s probably going to be a blip more than a real deal killer.”

And if you’re just starting to think about buying or selling, this could actually work in your favor. Some buyers and sellers may become cautious and pause their plans during times of uncertainty, like this, and that can open a short window of opportunity.

When fewer people are active in the market, well-prepared buyers may find less competition for homes, and motivated sellers may be more willing to negotiate. These brief slowdowns often create a moment where you can make a move that would be harder once activity ramps back up.

Bottom Line

A government shutdown can cause short-term delays for some buyers, but it doesn’t derail the housing market. The last time this happened, sales picked back up as soon as the government re-opened.

If you’re unsure how this might affect your plans, or just want to make sense of what’s happening, connect with a local real estate agent.

How To Make Sure Your Sale Crosses the Finish Line

If there was one simple step that could help make your home sale a seamless process, wouldn’t you want to know about it?

There’s a lot that happens from the time your house goes under contract to closing day. And a few things still have to go right for the deal to go through. But here’s what a lot of sellers may not know.

There’s one part of the process where some homeowners are hitting a road bump that’s causing buyers to back out these days. But don’t worry. The majority of these snags are completely avoidable, especially when you understand what’s causing them and how to be proactive.

That’s where a great agent (and a little prep) can make all the difference.

What’s Causing Some Buyers To Back Out

The latest data from Redfin says 15% of pending home sales are falling through. And that’s not wildly higher than the 12% norm from 2017-2019. But it is an increase.

That means roughly 1 in 7 deals today don’t make it to the closing table. But, at the same time, 6 out of 7 do. So, the majority of sellers never face this problem – and odds are, you won’t either. But you can help make it even less likely if you know how to get ahead.

You might assume the main reason buyers are backing out today is financing. But that’s actually not the case. The most common deal breaker today, by far, is inspection and repair issues (see graph below):

a graph with text on itHere’s why that’s a sticking point for buyers right now:

  • Buyers are already stretched thin from high prices and challenging mortgage rates, so they don’t have the appetite (or budget) for unexpected repairs.
  • If they’re going to spend all that money, they want to get something that’s move-in ready. They don’t want to take on another high-cost project themselves.
  • They have more homes to choose from, so if yours seems like a hassle or if you’re not willing to fix something, they can just move on.

The sellers with the best agents have heard about this shift and they’re doing what they can to go in prepared. Enter the pre-listing inspection.

What’s a Pre-Listing Inspection?

It’s exactly what it sounds like. It’s a professional home inspection you schedule before your home hits the market. And while it’s not required, the National Association of Realtors (NAR) explains why it could be a valuable step for some sellers right now:

“To keep deals from unraveling . . . it allows a seller the opportunity to address any repairs before the For Sale sign even goes up. It also can help avoid surprises like a costly plumbing problem, a failing roof or an outdated electrical panel that could cause financially stretched buyers to bolt before closing.”

Think of it as a way to avoid future headaches. You’ll know what issues could pop up during the buyer’s inspection – and you’ll have time to fix them or decide what to disclose before you put your house on the market.

This way, when the buyer’s inspector walks in, you’re ready. No surprises. No last-minute panic. No deal on the line.

Is It Worth It?

Generally speaking, a pre-listing inspection costs just a few hundred dollars. So, it’s not a big expense. And the information it gives you is invaluable. But before you make that investment, talk to your local agent.

In some markets, it may not be worth it. And in others, it may be the best move you can make. It all depends on what’s happening where you are and what’s working for other local sellers. If your agent recommends getting one, they’ll also:

  • Help you decide which issues to fix
  • Prioritize repairs based on what buyers in your area are focusing on
  • Connect you with trusted professionals to get the work done
  • Ensure you understand local disclosure laws

That small step could save your deal (and your timeline).

Bottom Line

So, if there was one simple step that could help make your home sale go according to plan, would you do it?

If you’d rather deal with surprises on your terms (not with the clock ticking under contract), talk to an agent about whether a pre-listing inspection makes sense for your house.

It may be worth it so you can hit the market confident, prepared, and in control.

Why Some Homes Sell Quickly – and Others Don’t Sell at All

A few years ago, inventory hit a record low. Just about anything sold – and fast. But now, there are far more homes on the market. Listings are up almost 20% from this time last year. And in some areas, supply is even back to levels we last saw in 2017–2019. For sellers, that means one thing:

Your house needs to stand out and grab attention from day one.

That’s especially true when you consider why the number of homes for sale is up. Here’s how it works. Available inventory is a mix of: 

  • Active Listings: homes that have been sitting on the market, but haven’t sold yet
  • New Listings: homes that were just put on the market

Data from Realtor.com shows most of the inventory growth lately is actually from active listings that are staying on the market and taking longer to sell (see the graph below).

The blue bars show active listings. These are the homes that are sitting month to month and not selling. The green bars are new listings, the homes that were just put on the market. And it’s clear there are fewer new listings compared to how many are staying on the market unsold.

a graph of sales growthSince you don’t want your house to be one of the ones that take a long time to sell, let’s break down where things can go sideways and how to set yourself up to sell quickly.

Why Some Homes Sell and Others Sit

The secret to selling in today’s market is simple. Make sure your house is easy for buyers to say yes to as soon as it is listed. 

Price it based on current conditions (not what your neighbor sold for 3 years ago). Make important repairs. And highlight the best things about your house. If you do that, it will sell in any market – sometimes even faster than you’d think. Because the truth is, homes that are priced right today are still selling. 

It’s the homeowners who are clinging to outdated expectations that are seeing their house sit and their listing go stale. According to Redfin and HousingWire, here are some of the most common reasons sales stall out:

  • Priced it too high from the start
  • Skipped necessary repairs before listing
  • Didn’t stage the house well
  • Sellers won’t negotiate with buyers
  • Limited availability for showings
  • Ineffective marketing or listing pictures

Most of those things didn’t matter as much just a few years ago. When inventory was at a record low, sellers could skip the prep, name their price, and still walk away with multiple offers over their asking price.

But today’s market is different now that inventory has grown. And that means your approach needs to be different too.

You don’t want to try out old strategies and aim too high just to see what sticks. Your first few weeks on the market are everything. That’s when your listing gets the most attention – and when pricing or presentation mistakes hurt the most. Get it wrong up front and your house will sit…and sit. Get it right, and it’ll be snatched up before you know it.

The Right Agent Helps Your House Stand Out

Selling quickly isn’t about luck. It’s about knowing how to play to the market you’re in. And that’s where your agent comes in.

A great agent will analyze your local market, suggest a price based on the latest comparables sold in your neighborhood, and create a marketing plan that makes buyers pay attention from day one. They’ll also walk you through any repairs you need to make or whether you need to bring in a staging company. As the National Association of Realtors (NAR) explains:

“Home sellers without an agent are nearly twice as likely to say they didn’t accept an offer for at least three months; 53% of sellers who used an agent say they accepted an offer within a month of listing their home.”

That’s the power of getting it right (and getting expert help) from the start.

Bottom Line

There are more homes for sale today, but that doesn’t have to work against you.

When your house is priced right, shows well, and is marketed effectively, it will sell. Connect with an agent if you want to know how to make that happen in your market this fall.

Planning To Sell in 2026? Start the Prep Now

You’ve got big plans for 2026. But what you do this year could be the difference between a smooth sale and a stressful one. If you’re thinking of selling next spring (the busiest season in real estate), the smartest move you can make is to start prepping now. As Realtor.com says:

“If you’re aiming to sell in 2026, now is the time to start preparing, especially if you want to maximize the spring market’s higher buyer activity.” 

Because the reality is, from small repairs to touch-ups and decluttering, the earlier you start, the easier it’ll be when you’re ready to list. And, the better your house will look when it’s time for it to hit the market.

Why Starting Now Matters

Talk to any good agent and they’ll tell you that you can’t afford to skip repairs in today’s market. There are more homes for sale right now than there have been in years. And since buyers have more to choose from, your house is going to need to look its best to stand out and get the attention it deserves.

Now, that doesn’t mean you have to do a full-on renovation. But it does mean you’ll want to tackle some projects before you sell. Your house will sell if it’s prepped right. And you don’t want to be left scrambling in the spring to get the work done.

Because here’s the advantage you have now. If you start this year, you’ll be able to space those upgrades and fixes out however you want to. More time. Less stress. No sense of being rushed or racing the clock.

Whether it’s fixing that leaky faucet, repainting your front door, or finally replacing your roof, you can do it right if you start now. And you have the time to find great contractors without blowing your budget or paying extra for rushed jobs.

Get an Agent’s Advice Early

To figure out what’s worth doing and what’s not in your market, you need to talk to a local agent early. That way you’re not wasting your time or money on something that won’t help your bottom line. As Realtor.com explains:

“Respondents overwhelmingly agree that both buyers and sellers enjoy a smoother, more successful experience when they start early. In fact, a recent survey reveals that, for sellers, bringing a real estate agent into the process sooner can pay off significantly.”

A skilled agent can tell you:

  • What buyers in your local area are looking for
  • The repairs or updates you need to do before you list
  • How to prioritize the projects, if you can’t do them all
  • Skilled local contractors who can help you get the work done

And having that information up front is a game changer.

To give you a rough idea of what may come up in that conversation, here are the most common updates agents are recommending today, according to research from the National Association of Realtors (NAR):

Just remember, what’s worth updating really depends on the homes you’re competing with in your market. Some areas don’t have a ton of inventory, so little updates may be all you need to tackle. In other areas, there are far more homes for sale, so you may need to do a bit more to make your house stand out.

Your agent will walk you through what you need to do for your specific house and market. And that’s expertise that’ll really pay off. 

Bottom Line

If 2026 is your year to sell, the work starts now. Taking some time to prep means you’ll hit the market confident, ready, and ahead of other sellers who waited until January to get started.

Want to know which projects are getting the biggest return on their investment in your market? Connect with a local agent so you can head into next spring with a solid game plan.

Stay informed