Is the government shutdown affecting the Leavenworth real estate market?

One of the questions we are starting to get asked regularly is how is the government shutdown affecting the Leavenworth real estate market.

 

Government shutdown Photo courtesy of Stephen D. Melkisethian on Flickr

There are three parts of the answer to this question:

1. Consumer confidence

2. Government programs and services

3. After the shutdown

 

1. The effects of the shutdown on consumer confidence will depend quite a bit on the length of the shutdown. Of course, if the government defaults on its debts and doesn't raise the debt ceiling then we will likely see an even greater collapse of consumer confidence.

There is a huge correlation between consumer confidence and the number of homes that sell in Leavenworth. When confidence is low, buyers aren't buying  vacation homes in Leavenworth.

2. From USDA and FHA Loans, to IRS transcripts, there are a number of government programs related to real estate that are not available right now.

Some of our favorite blogs and news sources have done a great job of lining out the details:

http://mortgageporter.com/2013/10/getting-a-mortgage-during-the-government-shut-down.html

http://www.zillowblog.com/2013-09-30/how-a-government-shutdown-debt-default-would-affect-the-housing-market/

http://blog.estately.com/2013/10/what-the-government-shutdown-means-for-the-housing-market/

 

3. But what about when the government is back at work, won't everything be fine then?

My friend Rhonda Porter, a Seattle area mortgage expert writes:

Lenders obtain tax transcripts on transactions to make sure the income provided on the application and other supporting documentation matches what is filed with the IRS. ...........Under normal (non-shutdown) circumstances, lenders will not close without the transcript..........

Once the shutdown is over, the IRS will experience an enormous backlog of requests for tax transcripts. And if lenders require tax transcripts in files before funding once the shutdown is over, it may cause severe delays. The longer the shutdown continues, the more the backlog will build.

 

We're crossing our fingers that the government opens its doors soon and that the consequences to the housing market in Leavenworth and elsewhere are small.

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Allyson and Geordie Romer

Leavenworth real estate agents - Allyson and Geordie Romer

For over a decade, Allyson and Geordie have been serving clients in the Leavenworth-area real estate market. Together, they work tirelessly to stay on top of the regional market and present the most relevant opportunities to their clientele.

When not in the office, they can be found exploring the endless recreation opportunities of the area in all of its seasons.

 

Testimonials

 

Geordie provided excellent real estate representation! We appreciated his detailed knowledge of the market, his up front and honest approach, and his negotiation skills.
As reviewed on Zillow  – 

- Laura Anderson

 

 

As “west siders” looking for a getaway near Leavenworth, Geordie provided insight … his knowledge of design features important in a “snowy winter wonderland” was appreciated. Thanks Geordie!
As reviewed on Zillow  –
 

- Jean Stern

 

 

Geordie made this somewhat complicated transition easier for us…going above and beyond to help us work through issues that came up during the sale of our parents home. We appreciated his knowledge, attentiveness to details and his willing spirit.
Our family is grateful for Geordie!
As reviewed on Zillow  – 

- Terry Foster

 

 

Geordie was great in every way. We have been looking in the Leavenworth area for some time, and Geordie was absolutely the best for local knowledge, history and depth on neighborhoods, developments and the local market trends. He was very quick to respond (even when he was on his vacation) and worked very diligently to get all of our questions answered in a very timely fashion. We would recommend him highly to anyone looking to buy or sell a home. Very friendly, and helped us navigate all of the local options before we made an offer on the property that we purchased. Thank you, Geordie!

As reviewed on Zillow  – 

- Ryan Olsen

 

 

It was such a pleasure to work with Geordie and his wife, Allyson on our cabin purchase. They showed us a variety of locations, listened to what we wanted and helped us find the perfect match. Everything was smooth and not stressful, just relaxed and easy. We would definitely recommend Geordie and use him again if the need arises!

As reviewed on Zillow  – 

- Cammie Schlosser

 

Moving to Leavenworth?

Are you looking for a cabin or a condo in Leavenworth that your family can use as a home base when climbing, skiing or hiking around Leavenworth or Lake Wenatchee?

Maybe you rent a house here and have decided to stay, surprised how a summer of rafting somehow turned into seven years.

Maybe it’s time to escape the hustle of the big city (and its rain) and move to Leavenworth with its four seasons.

Maybe you bought a condo years ago, don’t seem to use as much, and it’s time to sell.

Whatever your motivation, we are here to help. If you are buying a home, the best place to start is with our Homebuyer’s Guide to Leavenworth.