Outlook Online

ILGARD study may help rural Ohio homebuyers

By Karen Moore,
Voinovich Center student intern

Buying a home in rural Ohio may be getting easier, thanks to the findings from a housing price study conducted by Ohio University's Institute for Local Government Administration and Rural Development for the Ohio Department of Development's Ohio Housing Finance Agency.

The study, which analyzed rural home sale prices, found that the average sale prices for existing homes differed considerably among Ohio's rural counties. OHFA is utilizing this data to adjust housing price limits for its Mortgage Revenue Bond Program, which makes below-market interest rates available to qualified first-time home buyers and anyone purchasing a home in a target area designated as economically distressed.

For many years, the program's sale-price limits for both new construction and resale homes was the same for all rural counties in Ohio, even though the market average selling prices for houses varied from county to county. The ILGARD study results have enabled OHFA to increase the sales-price limit on resale housing in 28 of Ohio's 41 rural counties. Price limits remained the same in three counties and dropped in 10 counties.

"We were surprised by the marked differences in average selling prices. They could vary by as much as $71,000," said Sara Boyd, senior research associate for ILGARD.

"This project has achieved results beyond our expectations, and can only continue to produce increased numbers of OHFA program homeowners," said Pete Simpson, rural lending liaison for OHFA. According to Simpson, lending activity has noticeably increased since the limit change, which was the first one since 1994. All limit changes must be approved by the U.S. Department of Housing and Urban Development, which took the ILGARD findings into consideration.

In the current phase of this ongoing study, ILGARD is gathering 2000 price data for 12 counties to determine if significant changes have occurred in the last two years.