There’s good news but some uncertainty in the Alexandria area residential real estate market due to the partial shutdown of the federal government.
Although a handful of homeowners are deciding to table their home search or delay making offers due to the shutdown, that’s not the norm, said Allison Goodhart DuShuttle of the Goodhart Group at Compass real estate in Alexandria.
“This has been one of the busiest January's we have ever had in this market, so it’s hard to know if that will continue into the spring market if the shutdown doesn't have a resolution soon,” she said. “For now, we've had a few people affected, but the overall market is rolling right along!”
That was echoed by realtor Christine Sennott with Keller Williams. “The clients I am working with have not changed direction because of the shutdown,” Sennott said. “At this point, those that have money in the bank to pay bills just assume their salary is deferred and are moving forward.”
McEnearney Realtor Jen Walker noted that inventory — the number of homes on the market — remains low, and many buyers are still active. One home in the Warwick Village neighborhood of Alexandria recently got eight offers, and some buyers are trying to get into certain neighborhoods before Amazon arrives.
However, she's also seeing that some government workers have found homes they like but are hesitant to write an offer because of the shutdown.
"It’s affecting a lot of people differently,” she said, and how the real estate market reacts will depend largely on how long this shutdown lasts.
The National Association of Realtors (NAR) did a survey of more than 2,200 Realtors on how the shutdown was affecting real estate. The results, released Jan. 8, noted “75 percent had no impact to their contract signings or closing. However, 11 percent did report an impact on current clients and 11 percent on potential clients.” Of those current or potential clients, 25 percent “decided not to buy due to general economic uncertainty.”
The Trump administration gave relief to the mortgage industry by restarting an IRS program that was essential to the mortgage industry and allows more people to proceed with closing on their homes during the shutdown. However, some loans are still affected by the shutdown, such as USDA loans, and that is causing some delays.
The Northern Virginia Association of Realtors’ 2019 housing market forecast, which was released before the shutdown started, predicted a continuation of tight inventory in Alexandria. Prices, which have been on the upswing, may moderate. It’s not clear how the shutdown will affect the spring market and part of it depends on how long the shutdown lasts.
If you’re thinking of selling your home in the early spring months, now is the time to start preparing by making needed repairs, cosmetic improvements and making plans to boost curb appeal once the snow melts. Homes that show well and are priced competitively are most likely to sell faster.
