Are Home Buyers Suffering from the Shutdown?
Mixed messages have crept out of Washington’s toxic environment to infect the rest of the country. Uncertainty rules the day in the Capitol and governs economic sectors as well, including the housing marking — a bellwether for the overall economy. Speaking to NPR, Mark Zandi, a chief economist for Moody’s Analytics, described housing as ”key to the economic recovery.”
In late September, Yale Professor Robert Shiller (of Case-Shiller index fame) writing for the New York Times indicated that the housing market was gearing up, driven by fears that the currently low interests rates would rise. That, coupled with the economy recovering, made it a good time to buy.
But Professor Shiller’s analysis debuted in a pre-shutdown America, and his sunny optimism is being marred by tales of delayed deals. In the Los Angeles Times, two such stories appear. First is Jay Joerger, who cannot close on his purchase in Palm Springs, C.A., because the deal must be approved by the U. S. Bureau of Indian Affairs, which is closed due to the shutdown. Second is a couple in Chino Hills, C.A., who must pay a penalty of $100 per day to the seller for not closing in time because the IRS is unable to verify income.