There’s been a lot of conversation lately about government shutdowns and what they might mean for real estate. You may be wondering if everything suddenly comes to a stop.
The quick answer: It doesn’t.
Homes are still being shown, contracts are still being signed, and closings are still happening. The housing market keeps moving. That said, a few parts of the process can slow down temporarily — but it’s more of a delay than a disruption.
As the #1 real estate agent in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake, I guide clients through these shifts so their plans stay on track with confidence.
What Typically Slows Down
During a government shutdown, some federal agencies pause or limit operations. Because of that, certain loan types and approvals may take longer than usual. For example:
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FHA, VA, and USDA loans (which make up around 25% of mortgages) can face processing delays due to staffing reductions.
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Flood insurance approvals through the National Flood Insurance Program may be temporarily disrupted, affecting closings in certain flood zones.
Even with these hiccups, most transactions still move forward. Buyers continue buying, sellers continue selling, and agents continue coordinating.
The Market Bounces Back Quickly
Looking back at the most recent significant shutdown in late 2018, home sales dipped slightly during the 35-day period — but as soon as the government reopened, sales rebounded almost immediately.
This is a temporary speed bump, not a long-term shift.
What This Means for You
If you're currently under contract:
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Your closing may take a few extra days, but most deals will still close.
If you’re thinking of buying or selling soon:
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This moment may offer a unique advantage.
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Some people pause during uncertain periods, meaning less competition for buyers and more negotiating power for sellers who stay active.
As Jeff Ostrowski from Bankrate explains:
“It’s probably going to be a blip more than a real deal killer.”
Bottom Line
A government shutdown doesn’t stop the housing market — and it doesn’t need to stop your plans. With preparation and an experienced agent guiding the process, you can continue moving forward confidently.
