Canadian/U.S. Exchange Rates and Nonresident Investors: Their Influence on Residential Property Values

Posted: 18 Nov 1999

See all articles by Earl D. Benson

Earl D. Benson

Western Washington University - Finance and Marketing Department

Julia L. Hansen

Western Washington University

Arthur L. Schwartz, Jr.

University of South Florida

Greg Smersh

University of South Florida

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.

JEL Classification: R21

Suggested Citation

Benson, Earl D. and Hansen, Julia L. and Schwartz, Arthur L. and Smersh, Greg, Canadian/U.S. Exchange Rates and Nonresident Investors: Their Influence on Residential Property Values. Available at SSRN: https://ssrn.com/abstract=186332

Earl D. Benson (Contact Author)

Western Washington University - Finance and Marketing Department ( email )

FMDS Department MS 9077
Bellingham, WA 98225-9077
United States
360-650-3375 (Phone)
360-650-4844 (Fax)

Julia L. Hansen

Western Washington University ( email )

Dept. of Economics
Bellingham, WA 98225-9077
United States
360-650-3204 (Phone)
360-650-4844 (Fax)

Arthur L. Schwartz

University of South Florida ( email )

St Petersburg, FL 33701
United States
941-966-2995 (Phone)

Greg Smersh

University of South Florida ( email )

College of Business Administration Dept. of Finance
St. Petersburg, FL 33701
United States
727-553-1619 (Phone)

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