Will the Federal Shutdown Affect the North Texas Real Estate Boom?

By: Justin Karcher

As a leader in the home building industry, it behooves us to report on anything that will affect the real estate market. We hope that by now you’re well aware of the federal shutdown that is affecting every American from coast to coast; it’s all over Cable News TV, the Internet, on the front pages of every newspaper and pretty much everywhere else. While the shutdown has not greatly impacted the real estate market thus far, that may soon change.

In the article, “Marin mortgate pros: Federal shutdown threatens real estate recovery,” Janis Mara of the Marin Independent Journal writes, “Because of the shutdown, the IRS and other agencies don’t have the personnel to supply income verification and other vital information, slowing mortgage processing and putting some homebuyers and sellers in limbo.”

Nationally, the real estate market had been improving, if a bit slowly. In Dallas and other parts of North Texas, however, the market has been booming, with not enough available houses to suit the raucous demand. Mortgage brokers and financial analysts worry that the shutdown will hamper market growth, if not halt it altogether.

When you purchase a home, there are many channels to go through; for instance, you have to acquire tax papers from the IRS. You also have to get Social Security verification. These two channels are overseen, of course, by federal agencies. The beginning of the mortgage process is essentially delayed, as acquiring the tax transcripts alone will make everything drag. This is due to the fact that the agencies don’t have the personnel to handle all that paperwork.

As we stated earlier, this hasn’t affected the market yet, but it could and will, especially if the shutdown continues. Nevertheless, at Crown Exteriors, we are optimistic that it will not negatively impact homeowners and homebuyers in North Texas, and we urge all of you to stay optimistic. You can’t shut down someone’s dream or a community’s boom. There will always be need for vinyl siding and fiber cement siding installation, replacement windows and doors, exterior painting services and gutter installation!

So, will delayed paperwork stop your dreams?