Columbus: Falling prices means it's a good time to buy
— -- With its market in the doldrums, the Columbus Board of Realtors launched a campaign earlier this year to let home buyers know that "the grass is greener here."
After all, they point out, the housing market should be put in perspective.
"We're a stable market," says Greg Hrabcak, president of the Columbus Board of Realtors. "And we're affordable."
Columbus is home to Ohio State University and Ohio state government. It's also the headquarters of Nationwide Insurance and Limited Brands.
In the second quarter, the Columbus metro area added 1,600 jobs — a 0.2% increase at a time when the national employment rate fell 0.1%.
Last year, Forbes.com said Columbus was the third-most stable city in the nation, after Seattle and Pittsburgh. Despite the good rating, Forbes noted that of 40 markets, Columbus was also the 17th worst market for mortgage delinquencies.
It's no wonder that the local economy hasn't been able to quickly recharge the housing market. Like other parts of Ohio, Columbus has suffered from the rise in home foreclosures.
In the second quarter of this year, the foreclosure rate was 39% higher than in the same period in 2007, according to RealtyTrac.com.
Subprime lending and fraud contributed to the rise in foreclosures, says Art Russo, a real estate agent. "Mortgage brokers were giving loans to people who didn't qualify and didn't know what they were signing," he says. "And they charged an exorbitant amount of fees."
At the same time, there was an overbuilding of homes and condominiums. "We especially have been flooded with condos," Russo says.
About 780 condos have sold in the Columbus market this year, he says, although there are more than 3,000 on the market.
Now the market has changed. Prices have come down, which is great for home buyers who can come up with down payments.
"There are a lot of positive things going on now," Hrabcak says. "Home buyers are getting a great value for the dollar." Although the housing market hasn't turned around, he says more home buyers are starting to shop around. "We're not Detroit or Toledo," Russo says. "We'll come out of it, and we'll come out faster than other cities."
