How a Government Shutdown Impacts the Maryland 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 Maryland housing market doesn’t stop, it keeps moving. Homes are still being bought and sold across Baltimore, Howard County, and beyond. Contracts are still being signed, and closings are still happening. The difference is that a few parts of the process may slow down slightly, but overall, the market continues to function.
What Typically Happens During a Shutdown
When 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 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 CoreLogic
“By recent estimates, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown…”
— Zillow
Flood insurance approvals can also be delayed since the National Flood Insurance Program is often affected, which may slow closings in coastal or low-lying Maryland areas.
Even with those challenges, most transactions still go through. Buyers keep buying, sellers keep selling, and agents keep helping clients move forward.
The Market Usually Bounces Back Fast
History shows that housing activity bounces back quickly once the government reopens. During the 35-day shutdown at the end of 2018, sales dipped slightly but rebounded fast after operations resumed.
Data from the National Association of Realtors (NAR) showed existing home sales slowed for about two months and then surged again as delayed closings caught up.
What This Means for Maryland Buyers and Sellers
If you’re in the middle of buying or selling a home in Maryland, don’t panic — most deals will still move forward, even if it takes a few extra days.
“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
If you’re just starting your search or preparing to list, this could actually be an advantage. When others pause due to uncertainty, you might face less competition as a buyer or stand out more as a seller.
Bottom Line
A government shutdown may cause some short-term delays, but it doesn’t derail the Maryland housing market. Historically, things rebound quickly once operations resume.
If you’re thinking about buying or selling and want to understand how current conditions might affect your plans, let’s connect. I’d be happy to help you navigate the Maryland market with clarity and confidence.