Government shutdown hobbles home sales

The U.S. government shutdown appears to have taken a bite out of the California housing market.

Sales of single-family homes dropped for the third consecutive month during October, the month of the 16-day shutdown, according to the California Association of Realtors.

Sales were down 2.7 percent compared with September and 11.1 percent compared with October 2012, according to the association’s monthly housing report.

The downturn was expected because of a regular seasonal drop in sales combined with the shutdown, which delayed the loan approval process and delayed many home closings said Kevin Brown, the association’s president, in a statement.

However, the report noted that condominiums and townhome sales remained strong, and Brown declared that the California housing market is still on the road to recovery.

“We are returning to a market that’s more balanced than we’ve seen in recent years, with home price gains that are more sustainable and a sales pace that’s characteristic of a normal environment,” Brown said.

October home sales took a tumble in the Inland Empire: down 1.8 percent month-to-month and 11.6 percent year-to-year in Riverside County, and down 5.8 percent compared with October 2012 in San Bernardino County, according to the association.

Home sales were up 5.1 percent in San Bernardino County compared with September, according to the association’s data.