Data from the National Association of Realtors (NAR) shows that during the last federal government shutdown, existing home sales slowed for about two months, then rebounded quickly as delayed closings worked their way through the system once the government reopened.
The slowdown wasn’t due to typical seasonality—it lined up almost exactly with the 35-day shutdown period. Once the government reopened, sales activity bounced right back.
What This Means for Buyers and Sellers in San Diego
If you’re buying or selling a home in Pacific Beach, La Jolla, or anywhere along the San Diego coast, don’t panic. Most escrows continue to move forward, even if they experience a few extra days of delay.
Jeff Ostrowski, Housing Market Analyst at Bankrate, explains:
“If you’re expecting to close in a week or a month, there could be some slight delay, but I think for most people, it’s probably going to be a blip more than a real deal killer.”
For those just entering the market, a temporary pause can actually be an advantage. When some buyers or sellers step back during uncertain times, it opens a short window of opportunity for serious movers.
With fewer active buyers, competition eases—giving well-prepared buyers a better shot at securing their dream home. Motivated sellers, in turn, may be more open to negotiation.
The Bottom Line
A government shutdown can cause a brief hiccup, but history shows it doesn’t derail the housing market. As soon as things return to normal, activity picks up quickly—especially in resilient areas like La Jolla and Pacific Beach, where demand for coastal living never truly fades.
If you’re curious how national events might affect your real estate plans, I’d be happy to share insight specific to your neighborhood.
Let’s connect and make a plan that fits your goals.
Mark Magstadt
Berkshire Hathaway HomeServices California Properties
DRE #01214558
Serving La Jolla, Pacific Beach, and San Diego coastal communities.
