A rare chance for selective buyers and sellers

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The latest government shutdown crisis has been averted, but these near-misses seem to happen every year. Some argue a shutdown could actually benefit the housing market in certain ways. Here are three reasons why a government shutdown could create a unique opportunity for certain home-buyers right now:

A shutdown could contribute to an economic recession, which typically leads to lower mortgage rates. Lower rates boost housing affordability and demand. So this could be an ideal time for buyers to lock in low rates.
Federal employees are impacted by shutdowns, but real estate agents and loan officers have already been dealing with income instability due to market conditions. A shutdown may “level the playing field” somewhat.
Indicators like declining trucking industry hiring often precede recessions. This suggests we may be on the verge of one soon. And recessions reliably lead to lower mortgage rates.

So while no one wants an actual shutdown, this environment presents a rare chance for selective buyers and sellers:

Sellers of entry-level homes can likely get top dollar due to high demand.
Move-up buyers can then purchase at lower prices during the ensuing recession.
Buyers may be able to negotiate great rates and terms before rates drop again.

In short, some homeowners may be able to “sell high and buy low” in the near-term housing market. But this window could close quickly if rates decline, spurring bidding wars again.

So for buyers and sellers ready to make a move, the time is now. Consult your agent and lender to map out a strategic plan to capitalize on today’s unique market conditions. The current uncertainty won’t last forever.