Despite having an impact across sectors and markets nationwide, the government shutdown has not appeared to negatively impact asking prices for homes on the market, according to real estate database Trulia.
Analyzing home prices between October 1, when the shutdown began, and October 15, which trend nearly in real time, Trulia finds home prices are up 1% between September and October, seasonally adjusted.
The slight increase is roughly in line with month-over-month increases over the past few months, Trulia notes, however, comparing how much prices have risen in October to date with previous months cannot show wether the shutdown has affected asking prices.
To measure the effects of the shutdown on asking prices, Trulia compared price changes in metros like Washington, D.C., where the local economy is more dependent on the federal government, with price changes in metros were the local economy is less dependent on the government.
Doing so, Trulia found asking home price changes on the metro level during the first half of October show no relationship between asking home prices changes and how much of local wages come from the federal government.
While the government shutdown doesn’t appear to carry an substantial impact on asking home prices, delays in data releases, like the jobs report and home-starts report, create uncertainty about housing’s recovery amid what’s been happening in Washington.
America defaulting on its debt, however, is likely to create havoc in the housing market an overall economy, says Trulia Chief Economist Jed Kolko.
Written by Jason Oliva