How Government Shutdowns May Affect Your Clients
As of 8:00 pm EST, September 30th, a government shutdown of federal agencies has taken place. Here's how it may affect your clients, especially those whose home financing is currently being processed.
Clients applying for a conventional mortgage are unlikely to encounter problems. However, clients with government-backed loans such as FHA, VA and USDA loans could face delays, although the FHA will continue to approve single-family loans. VA loans will be processed, but the possibility of staff layoffs and reduced support may slow down approvals, appraisals and eligibility requests.
Clients who require flood insurance to finalize their home purchases may also face delays, since the Federal Emergency Management Agency (FEMA) is included in the shutdown.1
August Sales Up in Three Regions
In an unexpected twist, pending home sales in August increased by 4.0% from the prior month, rising 3.8% year-over-year. These sales numbers surprised Wall Street analysts who were expecting flat sales for August.
Pending sales for August rose month-over-month in the Midwest, South, and West, and declined in the Northeast. The Midwest came in first place with an 8.7% increase.
This unexpected good news has affected agent confidence. August's REALTORS® Confidence Index survey shows that 19% of NAR members expect an increase in buyer traffic over the next three months, up from 16% last month and unchanged from one year ago. Seller expectations were lower, as only 19% of agents are expecting an increase in seller traffic. This reflects a 2% decrease from the previous month.2
Learn the Latest AI Skills, Courtesy of LinkedIn
Is it time to develop, review or build your AI skills? If you're wondering about these or other career skills, check out LinkedIn's Learning Blog. Here, you'll find articles that provide the latest news and insights on generative artificial intelligence, plus other career-related topics. Other blog articles assist management with everything from corporate culture to assisting staff members with their personal goals.
If you're not sure which AI course is your best starting point, visit this page to learn about the classes that are currently available.
Depending on the type of LinkedIn membership you (or your office) currently have, you may qualify for a month of free courses, plus discounted rates for annual subscriptions.3
Help Buyers Negotiate Better Deals with Builders
August sales of new homes rose more than expected. Recent data from the Census Bureau showed that sales were up 20.5% in August when compared to the previous month. This is also the largest one-month gain since August 2022.
This data is supplied by the U.S. Census Bureau and is based on buyers shopping in August and signing deals.
New home sales were strongest in the Northeast, where new construction has been relatively low. It was also strong in the Southern region, which is also the home of the busiest builders. Sales, while higher, were weakest in the West, where prices tend to be higher than in other regions.
If you're hesitant to work with buyers who prefer new construction, keep in mind that the builder's agent works for the builder...not the buyers. While you may not be able to negotiate a lower price, you may be able to convince the builder to contribute some upgrades to help close the sale.4
Will Threads Become the Next Twitter?
In contrast, X has lost both personal and business users during recent years. Reasons for the attrition include a perceived rise in misinformation and a general lack of trust. In addition, recent data suggests that Threads and X are currently neck-and-neck in the daily active user numbers race.
If you're wondering if you should set up or de-activate an X or Threads account, you may want to check each application's analytics if possible. This should help you determine which app is providing you with the most followers, and the type of engagement they're providing. Tracking trends on X may be prohibitive, as it's only available to Verified users.5
Sources: 1cbsnews.com, 2nar.realtor, 3linkedin.com, 4cnbc.com, 5socialmediatoday.com
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