High prices have been condemned by many home buyers to be one of the biggest hurdles in homeownership, but a recent study says there are actually people who benefit from a high price tag.
Inman's staffer Steve Cook writes about a recent study conducted by two economists--Christopher H. Wheeler and Luke M. Olson--from Federal Trade Commission, which suggests that higher home prices do good to minority home buyers because tight lending standards tend to loosen up. Cook writes,
Rising values alter lenders’ judgments about acceptable levels of risk and expected rates of return on housing-related assets. This variation may then translate into changes in the outcomes experienced by minority borrowers relative to non-minorities.