Yesterday I wrote about how FHA single family home loans will still continue to be processed, albeit at a much (likely) slower pace with the shutdown of the government, but what does that mean for the Boise real estate market?
FHA loans account for approximately 14% of real estate transactions in the Treasure Valley (Boise, Meridian, Eagle, Kuna, Star, Nampa and Caldwell) and VA loans make up about 7% of home sales. Adding those figures together, approximately 21% of real estate transactions could be affected by the shutdown.
Per the latest data today from the Intermountain MLS, there are 1,333 pending real estate transactions (again, in Boise, Meridian, Eagle, Kuna, Star, Nampa and Caldwell). Doing the math, there are likely about 280 real estate transactions relying on either VA or FHA financing currently pending in the Treasure Valley that are affected.
280 real estate transactions may not seem like a big deal, but it could potentially be a huge deal for the Boise area. Especially if you are one of the 21% who either are or are going to rely on FHA or VA financing to purchase your next house.
Hopefully the government shutdown is short lived so there is minimal impact to the economy. The Boise real estate market seems to be getting back on its feet and it would be terrible to have the government shutdown set the housing market back again.