Here’s How a Government Shutdown Could Stall Thousands of Home Sales | Global News Avenue

Housing industry officials warn that even a brief cut on major funding for federal flood insurance plans could create major problems for real estate sales as the U.S. government faces closure this weekend.

The National Flood Insurance Program (NFIP) will fail unless Congress passes an extensive federal government funding bill by Saturday’s deadline. this The Senate is considering The budget will keep the federal government until September. If Democrats block the bill, Funding several key government programsincluding NFIP, can end when the government closes.

“Builders need to be aware that even short-term disruptions to the program will force delays, in some cases, canceling home sales and multifamily transactions that require federal flood insurance under NFIP,” the National Association of Home Builders warned in a post on its website.

NAR calculates the flood coverage required for thousands of sales

NFIP provides flood insurance for homes in specially designated areas that are susceptible to dangerous flooding and few private insurance companies provide coverage.

The National Association of Realtors estimates that NFIP coverage is used in 1,360 home sales per day, with markets in Florida, California and Texas relying on coverage the most.

The closing delay will be like Housing sales are already slow Due to high mortgage rates and rising housing costs. High insurance costs Homeowners are also a problem.

“If private flood insurance is not available, real estate sales and loans can be delayed or stopped in many flood areas,” wrote Nadia Evanegelou, senior economist at NAR. “This damage will not only affect buyers and sellers, but it may also have a ripple effect on the wider real estate market, related industries and the economy.”