Housing Rebound Unaffected by Gov. Shutdown

Posted at: 10/04/2013 5:01 PM
Updated at: 10/04/2013 6:20 PM
By: Travis Dill

The federal shutdown has complicated a lot of things, but on Tuesday mortgage lenders and real estate agents said the local housing market won't be affected.

The stalemate in the nation's capitol is hitting many industries across the country, but it won't stop a housing market rebound in Duluth according to Steve Raj with Park State Bank.

“Here at Park State Bank we still have money to lend with the shutdown or not. So we're ready to lend and you come on in and we'll make sure you get pre-qualified and you'll close on time,” Raj said.

He oversees lending at the Duluth bank and said the shutdown does not affect private banks in terms of lending. Some might worry about getting a federal loan, but the lapse in government has not stopped those yet.

“Your Federal Housing Administration mortgages or your Veterans Affairs mortgages, lenders are still taking applications. We're not seeing any slowdowns. They haven't been told to shut anything off,” Re/Max owner Gary Kalligher said.

Kalligher deals in real estate in Duluth and the surrounding region. He said the shutdown isn't hitting the housing market here.

Kalligher said the market has bounced back from a low in 2011. He called this spring incredible for sales, and said the type of activity shows the improvement.

“You're going to have scattered houses that, you know, sometimes they won't even hit the market now, by word of mouth and that kind of stuff. A house will come on the marketplace for a day so you're seeing those types of dynamics occur in the marketplace,” Kalligher said.

He said the rebound is also backed up by an increased number of sales and higher home values in Duluth neighborhoods.

“So the health of the real estate market in general is just very, very good up here locally,” Kalligher said.

Both Kalligher and Raj said it is a great time to get into the market as a buyer or a seller, and the government shutdown won't stop that.

Raj said not to worry even if you are a furloughed worker. He said small lapses in employment shouldn't hurt your chances to get a home loan.