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Tuesday, April 30, 2013

Study: Blacks, Hispanics Pay More For Homes

A "Sold" sign is posted outside a home in Indianapolis, Tuesday, April 9, 2013. (Michael Conroy/AP)

A “Sold” sign is posted outside a home in Indianapolis, Tuesday, April 9, 2013. (Michael Conroy/AP)

A new study out of Duke University finds that black and Hispanic home buyers are paying up to 3.5 percent more than white home buyers for comparable homes.

Researchers looked at two million home sales from 1990 to 2008.

The study’s senior author, Patrick Bayer, says it’s not clear why minority home buyers are paying more.

One possible explanation could be that a larger percentage of black and Hispanic home buyers are new to the market, and as a result may not be experienced in negotiating the price.

Guest:

  • Patrick Bayer, department chair and professor of economics at Duke University. He’s also a research associate at the National Bureau of Economic Research.

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