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ederal shutdown is disrupting home‑buying, two new surveys show. NAR’s Call for Action survey collected stories from over 600 agents across the U.S., revealing that delays in USDA, VA, FHA loans and flood‑insurance renewals are stalling or canceling transactions. Agents in coastal states like North Carolina and California report that the lack of flood‑insurance coverage has turned escrow processes into “train wrecks,” eroding confidence and causing deals to collapse. The shutdown’s financial strain is reflected in the University of Michigan’s Consumer Sentiment Index, which fell to 50.3 on Nov. 7, the lowest since 1978.
Redfin’s survey of more than 1,000 Americans, conducted Nov. 3‑4, found that 45 % of respondents are now less likely to make a major purchase such as a home or car, up from 21 % in early October. The same survey shows 21 % are delaying a purchase, 15 % have canceled plans, and over one‑third feel worse off financially. Among those with monthly mortgage or rent payments, 20 % have missed or are late on a payment in the past three months, and 24 % expect to miss a payment in the next three months.
Realtors report a surge in open‑house visitors—sometimes 40 to 80 people—yet no offers, a pattern the NAR chief economist, Lawrence Yun, attributes to weak consumer sentiment. “The shutdown has emptied pocketbooks and dampened optimism,” Yun said on LinkedIn.
Economists predict a sharp dip in Q4 GDP due to the shutdown, but anticipate a rebound in Q1 if the government reopens. Chen Zhao of Redfin’s research team notes that any delayed demand in the housing market should return once federal services resume.
