How a Government Shutdown Impacts the Delaware Housing Market
You’ve probably seen headlines lately about how a government shutdown could impact housing. So, does it mean everything comes to a halt?
The short answer: No.
The Delaware housing market, from Hockessin to Wilmington and beyond, keeps moving. Homes are still being bought and sold, contracts are being signed, and closings are happening every day. While some parts of the process may slow slightly, the market as a whole continues to function.
What Typically Happens During a Shutdown
When a government shutdown occurs, some federal agencies scale back their operations or temporarily close. That can cause delays with certain loan types and insurance programs:
“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 CoreLogic
“By recent estimates, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown…”
— Zillow
Additionally, the National Flood Insurance Program may pause approvals, which can affect closings in areas near Delaware’s coastal and low-lying regions.
Even so, most real estate transactions continue as planned. Buyers keep buying, sellers keep selling, and agents help everyone stay on track.
The Market Bounces Back Quickly
Looking back at the last major shutdown in late 2018, housing activity slowed slightly but bounced back almost immediately after the government reopened.
According to data from the National Association of Realtors (NAR), existing home sales dipped briefly but rebounded quickly as delayed closings cleared.
What This Means for Delaware Buyers and Sellers
If you’re currently buying or selling in Delaware, there’s no need to stress. Most deals still move forward without major issues — just a little patience may be needed.
“If you’re expecting to close in a week or a month, there could be some slight delay, but for most people, it’s probably going to be a blip more than a real deal killer.”
— Jeff Ostrowski, Bankrate
And if you’re just starting to think about entering the market, this might actually be an ideal time. When some buyers or sellers hesitate, those who stay active may find less competition and better opportunities.
Bottom Line
A government shutdown can create temporary slowdowns, but it doesn’t stop the Delaware housing market. Historically, things rebound quickly once everything reopens.
If you’re wondering how current conditions could affect your buying or selling plans, let’s connect. I’m here to help you navigate Delaware’s housing market with confidence and a clear plan forward.