What the Ongoing Government Shutdown Really Means for the Housing Market

It’s been several weeks now with the federal government in a shutdown, and while the headlines are growing louder, the housing market across South Snohomish and North King County continues to move forward. But the extended pause in Washington is creating a few extra wrinkles, so let’s look at what’s happening, what’s coming, and what it means for buyers and sellers right now.

The Market Is Still Moving, but Not Without Friction

Even during a shutdown, homes are still being listed, sold, and closed. The difference this time is the length and the pressure it’s putting on parts of the process. With agencies running on limited staff, certain verifications, approvals, and loan programs have slowed… particularly FHA, VA, and USDA loans.

Flood insurance programs have also faced interruptions, which can temporarily hold up closings in designated areas. None of these issues are deal breakers, but they do make timing and preparation more important than ever.

Why the Local Market Remains Steady

Here in Lynnwood, Edmonds, Mukilteo, and Mill Creek, the fundamentals haven’t changed. Inventory remains tight, demand continues, and homes are still selling. While national headlines may create hesitation, local housing needs don’t stop for politics. Families still move, jobs still change, and life keeps happening.

For buyers, that can mean opportunity. With some buyers waiting on the sidelines, competition can ease up. For sellers, it means serious buyers are still out there and likely more motivated than ever.

What’s Different This Time

Because this shutdown has dragged on longer than most, the ripple effects are wider. Some loan approvals that once took days now take weeks. Flood insurance renewals and certain federal verifications are slower to process. Confidence in the broader economy has softened slightly, but the core housing demand in our region remains strong.

That’s why it’s so important to stay proactive. If you’re planning a move, plan ahead and expect a little extra processing time. And if you’ve been waiting for things to “settle,” you may actually miss some of the best opportunities of the season.

What Buyers Should Know

• Stay in close contact with your lender. Confirm any program-related delays early so you can plan accordingly.

• Keep your search active. There’s less buyer competition right now, which can open doors, literally and figuratively as many sellers are offering concessions.

• Stay patient with timelines. A few extra days on underwriting or insurance isn’t uncommon right now.

What Sellers Should Know

• Stay visible. Buyers who are still in the market are serious and focused.

• Be flexible. A delayed approval or closing doesn’t mean a lost deal, it just takes more coordination.

• Lean into presentation. Well-priced, move-in-ready homes are still moving quickly, especially in areas like Edmonds and Mill Creek.

Bottom Line

The ongoing shutdown has added a few bumps to the process, but it hasn’t stopped real estate from moving forward. The Pacific Northwest market remains one of the most resilient in the country, and activity continues across South Snohomish and North King County.

If you’re considering a move, this may still be your window. The right preparation and guidance can help you navigate any delays and take advantage of a less crowded marketplace.

Ready to plan your next move? Let’s talk about your goals and timing so we can position you for success, shutdown or not.