 |
| Canadian / U.S. Exchange Rates and
Nonresident Investors: Their Influence on Residential Property Values Author: Earl Benson, Julia Hansen, Arthur Schwartz, and Greg Smersh Start Page: 433 Abstract: Factors external to a
home’s characteristics may influence the sales price. This analysis focuses on
Bellingham, Washington, because of several influences including the Canadian economy and
nonresidents. First estimated is a constant-quality Bellingham housing price index, which
is used as the dependent variable in a reduced-form model of market price to estimate the
impact of the exchange rate. The analysis (1984–94) suggests that a 10% rise in the
exchange rate leads to a 7.7% rise in Bellingham home prices. Additionally, in 1990,
non-county buyers paid 4% to 6% more than county residents and non-county sellers received
6% to 8% less. |
