When the U.S. federal government shutdown began on October 1, 2025, its effects rippled across the nation — and the real estate market in Massachusetts, including Andover, hasn’t been immune. While the shutdown may feel distant from local home sales, its reach extends into mortgage approvals, insurance processing, and buyer confidence, all of which influence how homes in Andover sell, close, and appraise.

What’s Happening Nationally — and Why It Matters Locally

The shutdown occurred when Congress failed to finalize a federal budget, forcing many agencies to furlough employees or suspend operations. While essential services remain, several agencies critical to real estate transactions — like the IRS, FHA, VA, and USDA — have seen disruptions.

For buyers in Andover, this means longer waiting times for loan approvals, delayed tax transcript verifications, and potential hiccups in flood insurance renewals. And in a market as competitive as Andover’s, even small delays can change the pace of a sale.

How the Shutdown Impacts Real Estate in Andover, MA

1. Mortgage Delays Are Stalling Closings

Many Andover homebuyers use FHA or VA loans to purchase homes, particularly first-time buyers looking for lower down payments.
With limited federal staffing, the processing of these loans has slowed, causing potential delays in closing dates.

Even conventional mortgage borrowers may feel the pinch, as IRS transcript verifications—a key requirement for lenders—take longer to process during a shutdown.

2. Flood Insurance Issues for Specific Areas

While Andover is not a coastal town, parts of it — especially near the Shawsheen River — fall under flood-zone designations.
If the National Flood Insurance Program (NFIP) is temporarily halted or slowed, homebuyers purchasing in those zones may find loan approvals delayed or deals temporarily frozen.

This could make certain listings harder to close, even when there’s strong buyer demand.

3. Buyer Confidence Takes a Hit

Real estate thrives on certainty. A government shutdown, even if temporary, introduces economic unease, causing some buyers to pause or pull back from making offers.
In Andover — where homes often receive multiple bids and sell quickly — a slight dip in buyer confidence can reduce the bidding pressure that typically drives prices above asking.

4. Local Agents and Sellers Must Adapt

Andover’s housing market has been known for tight inventory and strong seller leverage. But with shutdown-related delays, sellers might face longer transaction times or requests for flexible contingencies.

Agents are advising clients to prepare all documentation early, work closely with lenders, and consider backup financing options for buyers using government-backed loans.

Tips for Andover Buyers and Sellers

For Buyers:

• Get pre-approved early and stay in close contact with your lender.

• If you’re using FHA, VA, or USDA financing, ask your lender about potential delays.

• Check flood-zone maps early, especially if you’re looking near the Shawsheen River.

• Don’t delay insurance applications—backlogs could extend processing times.

For Sellers:

• Confirm that potential buyers are financially prepared and not dependent on delayed federal programs.

• Highlight home features that appeal to confident buyers — recent upgrades, move-in readiness, or clear inspection reports.

• Stay flexible with closing timelines to accommodate loan processing delays.

For Investors:

• Keep an eye on any temporary slowdown in transactions — it may create short-term opportunities in a high-value market like Andover.

• If you’re rehabbing or flipping properties, account for possible permitting delays if any federal documentation is involved.

The Outlook for Andover Real Estate During the Shutdown

The Andover housing market remains strong at its core. The fundamentals — desirable schools, commuter access to Boston, and high-quality housing stock — continue to support home values.

However, the shutdown’s ripple effect adds short-term friction.
Buyers reliant on federal programs may step back temporarily, but local demand and limited inventory should cushion the impact.

If the shutdown continues beyond several weeks, Andover may see slower transaction volumes, especially in mid-range listings tied to federal financing. Yet for sellers with well-prepared homes and conventional buyers, the market remains active — just slightly less predictable.

The federal government shutdown might sound like a distant policy issue, but for homeowners and buyers in Andover, MA, it’s a reminder that national politics can influence local property deals.

While the town’s real estate market remains resilient, understanding how federal slowdowns affect loans, insurance, and confidence can help you plan smarter — whether you’re buying, selling, or investing.

For Andover residents, staying informed means staying ahead — and that’s the key to navigating uncertainty in any market.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witt,e Andover Realtor, MA