Do Foreign Buyers Really Pay More? Evidence from the Miami Condo Market

Summary

Past research has suggested that some nonlocal buyers pay more than locals when purchasing homes. This is an example of information asymmetry and higher information availability for local buyers. Although there is relatively little research broadening nonlocals to foreign buyers, the premium should be even larger to account for the issues of information asymmetry and exchange rates. However, technology has revolutionized the availability of information about local housing markets.