The federal government shutdown could soon start affecting Michigan’s real estate industry.
The problem is government agencies that verify the identities and tax returns of people taking out mortgages are closed by the shutdown. That means banks and mortgage companies are unable to finish their paperwork on home loans.
Carol Griffith is the president of the Michigan Association of Realtors. She says the shutdown could prevent many Michigan home buyers from closing deals in the next few weeks. Griffith says that means multiple home sales could be held up because of the paperwork problem caused by the government shutdown.
“You know I don’t see any real big issues right now,” says Griffith, “but obviously if this goes on for a couple of more weeks then the consequences and the concern will be stronger.”
The shutdown comes as Michigan’s real estate industry has been improving. A recent survey found the median home sale price in Michigan is about double what it was four years ago. The price is still well below the peak before the housing bubble burst in 2005.
