USA Today: Diverse economy helped Columbus, Ohio, in downturn

clipped from www.usatoday.com By Christine Dugas, USA TODAY Columbus is well known as Ohio's capital and home to one of the nation's largest universities, Ohio State University. But fewer realize that it has a diversified regional economy. This seven-bedroom home on 9.7 acres, on sale for $3.4 million, is the most expensive property on the Columbus market. That helped it avoid many of the economic aftershocks that came after the housing bubble. "I don't think anybody steered clear of it," says Sue Lusk-Gleich, president of the Columbus Board of Realtors. "But Columbus did reasonably well." Now the local housing market is hoping that sales will continue to rebound even though the home buyer tax credit has ended. Lusk-Gleich knows that she doesn't have a crystal ball, but she sees signs of improvement. "It's not going to be as fast as it was after other recessions," she says. "I think we have to get grounded and take baby steps and we will recover." •Sales status. The tax credit's effect is still being reflected in sales because it takes time to close on the contracts. But since the deadline at the end of April, the Columbus metro housing market saw a bit of a slowdown that Lusk-Gleich says is over now. There are properties for all budgets and all buyers. And interest rates are historically low, under 4.5% for a 30-year, fixed-rate mortgage. •Price points. Home prices have fallen from their peak in 2005, but not as dramatically as in other parts of the country. The average decline was probably no more than 15% to 20%, says Lusk-Gleich. But the drop varied considerably from one location to another. In June, the median sales price — $153,456 — was 2% higher than a year earlier. •Local economy. The Columbus area's economy is diversified. In addition to state government, the university and insurance, it also has one of the strongest manufacturing bases in the U.S., says Ned Hill, dean of Cleveland State University's Maxine Goodman Levin College of Urban Affairs. Local manufacturers include Scotts Miracle-Gro and Honda of America. The employment situation is better than elsewhere in Ohio because the university's research funding is up, insurance jobs have been stable, and manufacturing has recovered a bit. Columbus had an unemployment rate of 8.7% in May, less than the state's rate of 10.7%. •Hot 'hoods. The Arena District in downtown Columbus has been transformed in recent years. It is a vibrant area that attracts people of all ages. It is close to a riverfront park that is under construction. It has a new stadium for the Columbus Clippers, a minor league baseball team, and an arena for the Columbus Blue Jackets, Ohio's only National Hockey League team. It is a great time to be a home buyer in Columbus, especially for condos, says Andy Schiffman, president of the Midtown Area Real Estate Association. Condos and townhouses range from $109,900 to $699,999.