How a potential government shutdown could affect our housing market.
Today, I want to discuss how government actions can significantly affect your finances and the real estate market. Specifically, I want to delve into the recent speaker battle and its potential implications for all of us, whether we like it or not.
For those who might not be up to date, there’s been a struggle over a government shutdown in the United States. Kevin McCarthy, the Republican Speaker of the House, chose to side with Democrats to extend the government’s operations, ensuring that we didn’t face a shutdown and could continue paying our bills.
This move, however, has left many on the right wing of the party frustrated. They desire a more granular approach to budgeting, wanting to scrutinize each line item to decide where funds should be allocated. Questions arise about whether money should go to Ukraine, the military, or schools. They seek a detailed breakdown to make these decisions.
This internal strife has resulted in the right wing of the party successfully ousting Kevin McCarthy from his position as Speaker of the House. As I record this and as you receive this message, they may have elected a new speaker, with Trump also offering his own candidate. Democrats, on the other hand, are capitalizing on this perceived Republican disarray.
But the reality remains the same, regardless of your political stance. Government turbulence and instability spell trouble for markets, including the real estate market. This battle may lead to an imminent government shutdown because any new Speaker of the House will be wary of striking deals after witnessing the fate of their predecessor.
So, what does this mean for you? Whether you’re a seller or a real estate investor, it’s essential to be proactive. Consider getting ahead of the next extension if you’re thinking of selling your home. In the event of a government shutdown, with unpaid bills, protests, and disruptions, it’s wise to plan ahead. Keep in mind that such turbulence in the stock market will have ripple effects on the local real estate market and interest rates. Although these impacts may not be immediate, they are likely to manifest over time.
As always, call or email me with any questions. I look forward to hearing from you!