ASU Study: Slow Home Price Growth Could Be Related To Shutdown

November 06, 2013

The shutdown of the federal government may have had an impact on home sales in Arizona, according to a new Arizona State University housing study.

Mike Orr of the WP Carey School of Business said the median price of a single-family home was still up in September to $199,000. That is a 33 percent increase over last year but just a slight jump from the August median price. He thinks the shutdown led to reluctance to buy.

“When people can see something looming like a possible default, they tend to think it could really put all the markets into a turmoil,” Orr said. “Maybe it’d be a good idea to wait on the sidelines for a bit and see what happens rather than make a big decision.”

Orr said he doubts the slowdown in sales will last long. He said the supply of homes on the market has increased, due to rising prices. Orr expects the market to pick up again after the New Year, maybe as early as February.