There’s been a lot of buzz lately about how a government shutdown could affect the housing market, especially here in Charleston. You might be wondering: Does everything stop?

The short answer? No.

Real estate keeps moving. Homes are still being listed, buyers are still writing offers, and closings are still happening every day. What changes is the pace of certain parts of the process. Mostly those tied to government-backed loans and insurance approvals.

What Typically Happens During a Government Shutdown

When federal agencies scale back or close temporarily, it can slow down a few key steps in buying or selling a home:

• ✔️ FHA, VA, and USDA loans may face delays since those agencies often operate with reduced staff. These loans make up about a quarter of all mortgage applications nationwide.
• ✔️ Flood insurance approvals (through the National Flood Insurance Program) can be paused, which matters for many Charleston and coastal South Carolina properties.
• ✔️ Verifications and document processing tied to federal databases can take longer than usual.

Even with these hiccups, most transactions still close. Buyers keep buying, sellers keep selling, and your real estate goals stay on track.

The Market Always Bounces Back

We’ve seen this before. During the 2018–2019 government shutdown, which was the longest in history, sales slowed slightly but recovered almost immediately after the government reopened.

According to the National Association of Realtors (NAR), existing home sales dipped for about two months, then rebounded as delayed closings caught up. That short-term dip wasn’t due to seasonality; it matched the shutdown exactly.

What This Means for You

If you’re already under contract, don’t stress. You might experience a slight delay, but most deals still move forward. As Bankrate housing analyst Jeff Ostrowski puts it, “For most people, it’s probably going to be a blip more than a real deal killer.”

If you’re thinking about buying or selling? This kind of uncertainty can actually work to your advantage. When others hesitate, motivated buyers and sellers often find unique opportunities because less competition may give more negotiating room and better timing before the market heats back up.

The Takeaway

A government shutdown can cause short-term delays, but it doesn’t derail the Charleston housing market. Real estate across the Lowcountry keeps moving, and when things reopen, activity tends to surge right back.

If you’re wondering how this could impact your next move or want help navigating a shifting market, let’s connect. I’ll walk you through what to expect and how to stay one step ahead.