Real estate market braces for sequester

NORFOLK, Va. (WAVY) - A realtor told 10 On Your Side homeowners aiming to sell soon should brace for a major impact if a sequester takes place later this week.

For weeks, Americans like Blair Emil have been waiting for a solution to be reached in Congress regarding across-the-board cuts that will be felt throughout the country.

"The Republicans have to give, the Democrats have to give, and it seems that every time it appears they might be, one of the Republicans or one of the Democrats stands up and says, 'Nope, I changed my mind, I don't like that,'" Emil said.

Emil is a government contractor being transferred to Florida. His home has been on the market for the past eight months.

"We don't have a buyer, we don't have a renter... We're taking a big chance," Merry Emil said. "It's just generally going to be harder and harder to sell because of the tightening of the lending and the less people who can afford to buy."

10 On Your Side spoke with Pat Steele, chair of the Hampton Roads Realtors Association.

Steele said the overall area has seen an upturn in the real estate market the past several months and they don't want anything affecting people's ability to buy now.

"Sequestration could really affect jobs, that's what they're saying, jobs relates to income and income relates to the ability to purchase a home," Steele said. 

Several realtors told WAVY.com one of the reasons they believe they have seen more buyers lately is due to a fear that interest rates could soar.

Interest rates have gone up about 1 percent since December. Every 2 percent increase in an interest rate reduces the average price of a home potential buyers can afford by 25 percent.