Is the Government Shutdown Slowing Down the Housing Market?

By Chris Doherty

Christian Doherty lists and sells more homes than any other agent in the Greater Lowell, Massachusetts market with over 300 homes sold in the past 12 months. Chris is ranked in the top 1% of all agents in the United States.

Have you noticed how a government shutdown quickly becomes more than just a headline? It’s not just about politics; it reaches into everyday life, including the Massachusetts housing market. I’ve seen firsthand how it can put plans on hold for buyers and create a ripple effect that touches nearly everyone involved in real estate.

A client of mine recently had to pause her home search after being placed on unpaid leave during the government shutdown. Without a paycheck, she could not move forward with her purchase. Across Massachusetts and the country, many government workers are in the same position, and that pause in buying power is one of the first visible effects on the housing market.

Here’s a closer look at how the shutdown affects real estate activity and how you can spot opportunities while the market slows down.

The immediate market impact. When fewer people can buy, the pace of the market slows. It also affects the systems that keep home financing moving. Many loans depend on government-backed programs like FHA or VA, and when there are fewer employees available to process them, everything takes longer. The programs do not disappear, but the workflow slows because the people behind the desks are not there.

The temporary nature of the slowdown. The good news is that this kind of slowdown does not last forever. Once the legislature passes a funding agreement, furloughed employees return to work and receive their back pay. When that happens, buyers who had paused their search can reenter the market. Mortgage processing speeds up, and the activity that had stalled begins to move again.

The silver lining: a buying opportunity. Periods like this create a small window of opportunity. The winter months are already slower for real estate, and with fewer active buyers, there is even less competition. For those who are still ready to purchase, it can be a great time to find good options and better negotiating room before the market picks up again.

What to watch for. Once government operations resume, expect the market to react quickly. Loan programs will catch up on pending applications, and many of the buyers who were forced to wait will return at the same time. This can lead to a noticeable rebound in sales and activity.

Every slowdown has two sides: a pause and a recovery. I am hopeful that the government reopens soon so employees can return to work and the market can find its rhythm again. In the meantime, this quieter stretch could be the perfect opportunity for buyers to act before activity surges back.

If you’re wondering what these changes could mean for you, give me a call at 978-746-0124 or send an email to chris@dohertyproperties.com. I’m here to help you take the next step.