The Government Shutdown and the Real Estate Market

SF Market Scoop

October 17, 2013

The Government Shutdown and the Real Estate Market


The U.S. government shutdown and the escalation of concerns about the debt limit/possible default has drastically affected San Francisco market activity as measured by the percentage of listings accepting offers – as in a drop of approximately 50% from normal levels. Of course, this might be a short-term transitory effect that will disappear if these issues are resolved soon, as we certainly hope they are.
The Wall Street Journal reported last week that a Pew Research Study showed that the more affluent people were, the more concerned – as in very concerned – they were about the debt limit not being extended and the government going into default. In that study, the affluent were those households with $100,000 and more in household income: Certainly, our demographic of buyers falls into that category. Interestingly, the East Bay, with a median price about half of ours, is not showing the big drop in the percentage of offers being accepted in the past 2 weeks.
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