Impact of the Government Shutdown

Twenty-nine percent of respondents to the October 2013 REALTOR® Confidence Index Survey reported that the government shutdown had a temporary effect on ongoing transactions. Other data indicated that the shutdown also apparently impacted buyer confidence to some degree for future transactions. Overall the impact was noticeable but somewhat lower than feared.

Of the respondents who experienced an impact, about 25 percent reported that the impact was caused by waiting on IRS income verification, 43 percent reported they could not access FHA/USDA financing, while 11 percent reported jobs loss, furlough, or a reduction in income. About 29 percent cited other factors that included factors not directly related to the shutdown. See the October REALTORS® Confidence Index Survey report.

Jed Smith, Managing Director, Quantitative Research

Jed Smith is Managing Director, Quantitative Research with the National Association of Realtors®. He has worked on real estate issues for the past 20 years, providing input on a variety of housing, commercial real estate, tax, and planning issues. Recently he has been involved in several international studies.

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