Government Shutdown May Have Affected Phoenix Housing Market

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Brandon Hunt via Flickr


It turns out that a partial shutdown of the federal government has consequences.

Arizona State University's W. P. Carey School of Business released its monthly report on the Phoenix-area housing market, and things weren't so hot last month.

The home values have been rising for months, but there weren't too many people buying last month.

Here's the statement from W.P. Carey's Center for Real Estate Theory director, Mike Orr:
"Since the beginning of July, the Phoenix-area housing market has cooled dramatically. The main change is a steep fall in demand, which we can see in the 12-percent drop in single-family-home sales activity just between August and September alone. Going forward, we anticipate a much slower rate of price appreciation than the furious pace we have witnessed over the last two years."

"The sudden weakness in owner-occupier demand since July is unusual and unexpected. Poor consumer sentiment and concern over the government shutdown seem to have accelerated the decline. We also have no government information available yet on new-construction permits because of the shutdown."
Although there were reports that the Federal Housing Administration would stop processing government-backed loans at the beginning of the government shutdown, that turned out to be untrue.

So, the suggestion from the W.P. Carey School's report is, "Poor consumer sentiment and concern over the government shutdown seem to have accelerated the decline [in demand]."

Still, the median single-family-home price was clocked at $199,000, which is well above where it was two years ago, at $150,000.

And on the higher end of the scale, it looks like things are going just fine:
The situation has changed dramatically from September 2012 when the luxury market was 39% smaller than the low end market in terms of dollars spent. In contrast 56% more dollars were spent on homes over $500,000 in September 2013 than on homes under $150,000. However, this is partly because many homes that were valued at less than $500,000 in 2012 are now priced over $500,000. Similarly, many homes that would have been under $150,000 last year are now priced well over 150,000.
Click here to check out the monthly report.

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Follow Matthew Hendley on Twitter at @MatthewHendley.




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12 comments
Flyer9753
Flyer9753 topcommenter

Republicans.... it's amazing to me they are against homosexuality... since they spend so much time screwing ALL of us, male and female alike.

Oh wait.. I forgot about the 12th Universal Rule... Republican Hypocrisy is never ending

Hope the Republitards enjoyed watching Bloomberg and Cuccinelli losses.. you are going to be seeing that repeated a LOT more all the way through 2020.. good riddance to bad rubbish

ExpertShot
ExpertShot topcommenter

These Republicant pigs who supported this unnecessary and self-injurious shutdown must be kept from the trough or they will knock it over. 

Did you know that President Obama is descended from the first African Slave in the US Colonies?  It's like his family went from the first slave to the first family!  How cool is that?

jonnyquest
jonnyquest topcommenter

I'm surprised that McAuliffe got 48% with his main cheerleader at 39% job approval. I hope Obama continues to campaign for ALL Dems.

jonnyquest
jonnyquest topcommenter

Bloomberg is an Independent like you. He wasn't running. McAuliffe outspent Cuccinelli 10 to 1. Both Clintons and Obama were supporting McAuliffe who won with a resounding 48% to 45.5%! A landslide! A clear mandate!

SHUTUP
SHUTUP

@ExpertShot Too bad thats not true.  Did you know Obama has a bloodline that descends from the crown of England?  I guess you forgot he is white, oops, your bad.


Go back to your substance abuse class and get your mind right.

jonnyquest
jonnyquest topcommenter

I wonder if the first African slave in the US was a liar too?

Flyer9753
Flyer9753 topcommenter

@jonnyquest 

Bloomberg was a Republican. While he may have changed that recently, he was a republican. 

You attempting to claim otherwise is pointless and just plain wrong.

Your whining about campaign spending is ludicrous, after what the koch suckers and republicans in general have pulled money wise in politics over the past 30 years.. oh wait.. that's right.. Republican hypocrisy, thanks for giving us another example of it.

As to the rest of your comment.. what are you babbling about??? On second thought, don't bother, I don't care.

jonnyquest
jonnyquest topcommenter

COME ON MAN! He's an "ExpertShot"!

jonnyquest
jonnyquest topcommenter

Yep. Gay slurs. It was just a matter of time. Racial slurs are next.

1959cutter
1959cutter

@Flyer9753 @jonnyquest the "effeminate elite "used to be what spiro agnew called them,now its thr republicans that are effeminate!....oh yeah,and elitist!

Flyer9753
Flyer9753 topcommenter

@jonnyquest 

He can call himself whatever he wants, he walks like a rep, talks like a rep, acts like a rep... he's a rep.

Why do you insist on bringing up Obama in every post even when not relevant?? Again, I don't care the answer, just trying to show you what it is that proves you the fool since you are obviously so biased.

jonnyquest
jonnyquest topcommenter

Before Bloomberg was a Republican he was a Democrat. Maybe one of them Obama Navigators will show you how to work Google. Good luck! HAHAHAHAHAHAHAHAHA!!!!!

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