Study finds Latinos and Blacks pay more for homes | Paterson Times

Study finds Latinos and Blacks pay more for homes

According to a study conducted by Duke University if you are a Latino or Black home buyer you may have paid more for a house than your white counterpart.

The Duke University study analyzed more than 2 million home sales to find out that Black and Hispanic buyers paid 3.5 percent more for homes in Chicago, Baltimore, San Francisco and Los Angeles than white buyers.

The researchers could not link buyers’ income, wealth or access to credit as a reason for the price hike. One clear explanation was that Blacks and Hispanics might be first time home buyers who are not equipped with the negotiating skills as experienced buyers.

Pat Bayer the department chair and professor of economics in Duke University said, “But we also know from other research that minority buyers are shown a more limited set of properties by real estate agents and may, therefore, feel like they have to pay more when they see a house that really suits their needs and tastes.”

The good news is that the price increase is not due to any racial prejudices.