The federal shutdown hasn’t yet hurt home prices, according to the latest data from real estate firm Trulia. Nationally, residential asking prices are up one percent between September and the first half of October, seasonally adjusted, the Trulia data show. This slight increase is in line with the increases seen in recent months, according to Trulia’s chief economist Jed Kolko.
“Before the shutdown started, several factors were already cooling down price gains, including expanding inventory, higher mortgage rates, and declining investor activity,” Kolko wrote in a blog post on Trulia yesterday. “Asking home-price changes in the first half of October were uncorrelated with the local economic impact of the shutdown.”
To be sure, there are other worrying signs in Washington, Kolko said, including the Fed’s “taper” talk, negotiations of the new budget, and the debate over how to reform Fannie Mae and Freddie Mac. [Trulia] – Hiten Samtani