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‘US Diplomacy’ Affects Washington’s Real Estate Market in Pandemic Times

‘US Diplomacy’ Affects Washington’s Real Estate Market in Pandemic Times

Monday, 3 May, 2021 - 08:45
The US real estate market is witnessing strong signs of recovery amidst lower interest rates (Asharq Al-Awsat)

Despite the world not yet settling the debate on whether politics or economy should have the upper hand whenever the two fields intersect, cooperation between the two is becoming ever more a must as tough challenges like the coronavirus pandemic unfold.

Experts confirmed that the US real estate market took a hard hit under the global pandemic but noted that cooperation between the federal government, banks, and economists, completely reversed the situation and allowed for growth to bounce back.

Procedures implemented and banks offering to reduce interest rates have helped recovery, a Washington-based real estate specialist told Asharq Al-Awsat.

"The impact of the coronavirus pandemic was dire and clear on all commercial markets in the world. However, the real estate market was highly flexible," said Ali Nasser, adding that "it has weathered the storm well."

"To date, the property market prevails in being a big investment," noted Nasser.

"An overwhelming majority is benefiting from low-interest rates," he explained, stressing that lower bank rates are giving many the opportunity to buy their first house or upgrade to better residence options.

Nasser pointed out that consumer behavior is constantly changing and that it was currently being influenced by an increased drive towards living in the suburbs and countryside in the US.

"A mixture of low-interest rates and low inventory of housing has made the real estate market witnessed an activity boom nationwide," he said.

Based on principles of supply and demand, the outburst of buyers increased market competition and forced those selling property to adjust their ask price.

"Greater market competition is rewarding for purchasers but stings sellers in the tail," said Nasser.

In recent years, Washington has become home to the fourth most expensive real estate market in the US, not far behind Los Angeles, San Francisco, and New York. Favorable political and economic environments offered by the capital have attracted lawmakers and big companies like Amazon.

"US diplomatic relations with countries of the world reflected positively on the real estate market," Mark Lowham, a real estate expert at Sotheby's International Realty, told Asharq Al-Awsat.

"In the long term, we believe that the Biden administration's efforts to strengthen diplomatic ties around the world will make the US, and Washington in particular, a more attractive destination for global capital," said Lowham.

Compared to other capitals worldwide, Washington has a robust regional economy fueled by the federal government, technology, and healthcare that have made its real estate market a place to make solid long-term investments.

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