"Like other investment types, “geopolitical events affect real estate markets virtually instantaneously,” said Paul Habibi, a professor of real estate at the UCLA Ziman Center for Real Estate. “But unlike other investment types, we don’t always see the messaging right away.” What he means by that, Mr. Habibi said, is that with stocks, you can see the knee-jerk reaction to a negative event, like terrorism, or an unexpected outcome, like the Brexit vote, almost immediately, as stock prices drop. A stock market surge can be just as swift when an event like the U.S. election of President Donald Trump inspires investor confidence, he said. But with real estate, the timeline is stretched out, as the buyer’s decision to purchase a property is the start of a long process, which includes them making an offer, having it accepted, going into escrow and completing inspections and contingencies."
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