November 07, 2011 // Franchising.com // PARSIPPANY, N.J. - With the nation's armed forces engaged on multiple fronts across the globe, military bases in the U.S. serve as focal points for training and support services as well as "home sweet home" for military families, furloughed soldiers, returning servicemen and women as well as civilians. Military bases are often self-sufficient – with their own schools, supermarkets and movie theaters – which may lead to the assumption that they have been immune to the prolonged housing market slump.
"Military housing markets are definitely insulated but not immune to broader economic pressures," said Charlie Young, president and CEO of ERA Real Estate. "We are seeing some interesting trends in military markets. There is a lot of activity, but we are seeing many buyers move into rental markets because they are underwater in their homes due to frequent moves or the market drops that have eroded home values across the country."
Across the country, relocation activity is giving military markets a boost. For consumers looking to make a purchase, conditions are favorable for both primary residences as well as investment opportunities.
A spotlight on several ERA Real Estate brokerages serving military communities reveals distinct business drivers affecting their companies – not necessarily those affecting the market as a whole – such as base realignment and closure (BRAC) activities and steady relocation referrals. But also significant are the broader macro-economic pressures that are playing out across the entire industry including price declines, negative equity and tighter lending standards.
The ERA Real Estate Military Markets Report, available at (Link to report) examines five military markets and reveals that while there are common factors affecting all military markets, each market has its own conditions emphasizing that real estate really is local. The markets covered in this report include: Fayetteville, N.C., Colorado Springs, Colo.; El Paso, Texas; Virginia Beach, Va.; and Merritt Island, Fla.
All data is courtesy of ERA Real Estate brokerages except the foreclosure rate, which reflects September 2011 data from RealtyTrac.
ERA Real Estate is an innovative franchising leader in the residential real estate industry with more than 35 years experience in developing consumer-oriented products and services. The ERA® network includes approximately 30,000 brokers and sales associates and approximately 2,500 offices throughout the United States and 46 countries and territories. Each office is independently owned and operated. ERA Real Estate is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. ERA Real Estate information is available at: ERA.com.
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