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Updated: 3 hours ago

Maine Association of Realtors says federal shutdown is straining the housing market

By Laurie Schreiber

The federal shutdown is causing home buyers to face delayed closings, sellers to face canceled contracts and communities to lose access to programs that keep housing affordable and attainable, according to the Maine Association of Realtors.

The association, which represents 6,500 members, this week submitted letters to Maine’s congressional delegation urging a bipartisan solution “to end the federal government shutdown and restore funding for critical housing and real estate programs.”

The association continued, “What begins as a budget debate in Washington quickly becomes a kitchen-table issue for families nationwide. The housing market, which makes up nearly one-fifth of the U.S. economy, is feeling the strain.”

Disruptions

The association cited consequences that include:

  • The lapse of the National Flood Insurance Program has halted new policies, creating coverage uncertainty for thousands of pending home sales in high-risk flood areas.
  • Federal Housing Administration and Veterans Administration loan endorsements are backing up, delaying financing for first-time and veteran buyers, and FHA condo approvals remain suspended.
  • U.S. Department of Agriculture loans are paused, cutting off a source of rural housing finance.
  • Housing and Urban Development operations are limited, creating uncertainty for property owners and housing agencies that administer rental assistance programs and delaying community development grants that support affordable housing and revitalization.

“These disruptions jeopardize hundreds of thousands of homebuyers, sellers and renters, adding uncertainty to a market already facing affordability and supply challenges,” the association said.

The Maine Association of Realtors is a professional trade association established in 1936.

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