“Overall the Arizona real estate market may not see a huge affect from the Government shutdown. Especially if it is only a very short time frame. However if the shutdown should continue to last a longer period of time, we could very well see the affects.”
Read more details below and in the following links
The Phoenix housing market has proven it is on solid ground, and it should be able to weather a short-term shutdown of the federal government fairly well.
The reason housing, in particular, might be more isolated from the impact of shuttered federal coffers is because it is funded largely outside the federal government. Fannie Mae and Freddie Mac, though technically under government conservatorship, fund their operations through fees collected from private lenders, not through taxpayer funds. So the backers of the majority of mortgages in this country should continue to operate more or less normally.
Other government sources of funding for the housing market, including the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), may be impacted more directly. If applications for funds from these agencies aren’t approved before the government shuts down, then those applications likely won’t be processed until the government reopens. But a short-term disruption in these funds, while certainly detrimental, shouldn’t have much long-term impact on either demand or housing affordability.
Where a government shutdown may have more of an impact, especially on housing, is in consumer confidence. Buying a home can be a huge leap of faith for Phoenix Home Buyers, as they bet on continued job security and steady income to finance their homes. However if the government shuts down and furloughs workers and stops sending checks, even for a short time, many potential home buyers could get cold feet. If a shutdown drags on past a few days, this effect would only get worse.
http://www.cnbc.com/id/101074186
http://www.azcentral.com/news/politics/free/20130930government-shutdown-questions-answers.html
http://homes.yahoo.com/news/government-shutdown-debt-default-affect-housing-market-230649516.html
http://www.bizjournals.com/phoenix/news/news-wire/2013/10/02/how-government-shutdown-hits-travelers.html
