The federal government shutdown — with workers out since the start of October — could lead to a cancellation or delay of 450 contracts due to a backlog of loan approvals and delayed closings, according to the Maryland Association of Realtors.
Maryland, with one of the largest concentrations of federal workers and contractors in the country, has been hard hit by the shutdown. The association estimated that uncompleted deals could cost the industry and local economy as much as $70 million.
“Each day the shutdown continues, uncertainty grows for Maryland families trying to buy or sell a home," Denise Lewis, this year's president of the group, said in a statement Monday.
Her comment came as the association reported that transactions slowed in September as residential prices inched higher.
The state saw a total of 5,604 residential transactions in September, down slightly from 5,610 a year ago, according to the latest monthly home sales report the association published this week. Listings sat a little longer, too — now at 17 days from 11 days last September.
Prices remain strong. The median sales price for the entire state hovers at $430,000, up from $424,000 a year ago.
Today, buyers want to take a little more time before making a decision, Lewis said.
“When homes take longer to sell, it’s a sign that the frenzy has cooled,” Lewis said in a statement. “Serious buyers are back in the driver’s seat on timing and negotiations, and sellers who price to the market are still getting to the closing table."
Of the state's 24 counties, three of the state's most-populous counties led with the highest number of transactions: Montgomery (752), Baltimore (673) and Anne Arundel (641). Not surprisingly, some of the state's smaller counties — Kent (23), Somerset (25) and Caroline (38) — had the smallest number of deals.