Whatcom County broker details federal shutdown’s effects on real estate market
The current shutdown of the U.S. federal government has been in effect for more than four weeks, and a Whatcom County real estate broker says the shutdown has impacted the local market.
According to The White House’s government shutdown webpage, the economic impact of the shutdown on Washington state has been growing each day. The White House reports the following impacts in Washington:
- Decreased gross state product by $445 million per week
- Increased unemployment by about 1,000 workers
- More than 77,000 federal workers furloughed
- Delayed $91 million in Small Business Association (SBA) loans
- Decreased federal contract spending by around $367 million
Whatcom County real estate broker Andi Dyer of RE/MAX Whatcom County detailed how the shutdown is “already impacting homebuyers, sellers, and renters in Whatcom County,” in an October news release.
“One of the most significant immediate effects is the lapse of authority for the National Flood Insurance Program (NFIP) to issue new policies. This could delay closings for properties in flood-prone areas such as Birch Bay and the Nooksack Valley. Existing NFIP policies remain valid for 30 days, but uncertainty grows the longer the shutdown continues,” Dyer said.
“Since my October 1 release, both the federal government shutdown and the recent layoffs at PeaceHealth have added a layer of uncertainty to Whatcom County’s housing market. At open houses, I’m hearing more hesitation from buyers who are concerned about job stability and the national economy. That said, well-positioned homes are still attracting strong interest. The data show a market that is cautious but resilient,” Dyer told The Bellingham Herald in a Nov. 7 update.
“The lapse in the National Flood Insurance Program continues to delay some closings in flood-prone areas such as Birch Bay and the Nooksack Valley. Lenders are also reporting about a week’s delay in IRS income verification and FHA or VA loan processing. Transactions are still closing, but they require more coordination and contingency planning,” Dyer told The Herald.
The shutdown may also delay other real estate processes, such as IRS income verification, which controls the speed of mortgage approvals, according to Dyer. For first time home buyers and veterans looking to purchase homes, FHA and VA loan processing could also be slowed.
Federal housing programs could also be affected due to funding loss.
“This doesn’t mean real estate transactions stop — it means they may take longer. Real estate doesn’t stop during a shutdown — it just gets more complicated. My job is to help people cut through the red tape and keep their transactions on track,” Dyer wrote in the news release.
This story was originally published November 10, 2025 at 11:46 AM.
