Did the Government Shutdown Result in a Month-to-month Decrease?

There’s no denying that home prices remain hot year over year but did the recent government shutdown result in a month-to-month decrease in September? DataQuick reported that the median home price increased 21.3 percent over last September but slipped $3,000 from August in Southern California’s housing market.

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Perhaps this dip is simply the seasonal end of summer’s buying season and a downshifting in the housing market with the beginning fall. DataQuick said that sales remained brisk at higher price points last month while sales of lower price homes continued falling.

Sales of homes costing between $300,000 and $800,000, a range that would include many move-up buyers, rose 31.4 percent year-over-year. The number that sold for $500,000 or more soared 48.7 percent and $800,000-plus sales rose 48 percent.
Sales of homes priced below $200,000 dropped 32.8 percent year-over-year and sales below the $300,000 price point fell 24.9 percent.

Low-end sales have been falling as the number of distressed properties — foreclosures and short sales — are whittled from the market.

In August, foreclosure resales — properties foreclosed on in the prior 12 months — accounted for 7.1 percent market share. That was the lowest since a 5.5 percent share in June 2007, DataQuick said.

In the current cycle, foreclosure resales hit a high of 56.7 percent in February 2009.

Short sales — transactions where the sale price fell short of what was owed on the property — had a 13.6 percent market share, the lowest level since same share in April 2009.
House flipping, generally characterized as selling a property within 6 months of buying it, has flattened out at a low level, DataQuick said.

Are you seeing a slowdown in your area already? We’d like to hear from you!
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  • sguy707

    The government shutdown could play a part in month-to-month decreases, but we also have to remember that not many people are looking to sell their property in the fall.