Us government shutdown affected one-third of sales

The association's latest report shows that transactions slowed down in October 2013 compared to the same month in 2012, with some of that slowdown affected by the suspension of US government amid party disputes over a healthcare bill.

Indeed, a survey of Realtors suggests about 30 percent of ongoing transactions were "temporarily impacted" by the closure of agencies such as the IRS, FHA, USDA, VA.

Nonetheless, the slowdown in activity has been welcomed by some Realtors as a potential brake in the acceleration of house prices, which has also deterred buyers.

Indeed, higher mortgage rates have impacted the level of sales and stricter mortgage standards are disqualifying even some credit worthy buyers too.

"There is also continued concern that first time buyers using mortgage financing are being crowded out by buyers paying cash and those putting in larger downpayments," adds the NAR.

One-quarter of those who reported a knock-on effect from the shutdown said that the delay was mostly caused by waiting on IRS income verification, while 4 in 10 said issues surrounded FHA/USA financing. 11 per cent said unemployment, furlough or reduced income were to blame for the slowdown.

29 per cent of respondents said that the impact of the slowdown was less severe than first feared.