The government shutdown has shut down a lot of the real estate business in New Orleans. That is because reauthorization of the National Flood Insurance Program got caught in the political crossfire.
The impasse has slammed the brakes on pending home sales where mortgage lenders require the buyer to have flood insurance.
"It's certainly going to have to wait until flood insurance is available," said New Orleans real estate analyst Arthur Sterbcow.
Sterbcow says hopefully, the shutdown will be short-lived.
"I really don't anticipate that taking a lot of time, simply because there is going to be enormous public pressure over the next couple of days," he said.
But until then, he says home buyers in a lot of the New Orleans area are stuck in limbo.
"It'll probably hold them up until these two arguing parties get together and decide on a continuing resolution," he said.
So unless the buyer is paying cash, or the property is above the 100-year flood elevation, all closings are on hold.
Sterbcow said private flood insurance remains expensive, and mostly limited to protection beyond what the NFIP doesn't cover.
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