ERA Real Estate Franchises Serving Military Communities Reveal Market Dynamics
Low Inventory Pushing Prices Higher; Low Mortgage Rates Stimulating Buyer Activity
November 03, 2015 // Franchising.com // MADISON, N.J. - Shifting military priorities in the Middle East mirror shifts in real estate dynamics of military communities here at home, according to insights from ERA Real Estate’s 2015 Military Market spotlight.
ERA Real Estate, a global franchising leader and one of the nation’s top franchises for military veterans according to Franchise Business Review, recently analyzed market conditions in a number of key U.S. military markets, revealing both similarities and differences from national housing indicators.
“National industry reports indicate that persistent low inventory across much of the country is driving steady price appreciation, but in many military markets we are seeing that the increase is not as great,” said Charlie Young, president and CEO of ERA Real Estate. “Brokers serving military markets in California, Colorado, Florida, Louisiana and Texas all report that low mortgage rates and military incentives are creating higher buyer traffic, but that inventory shortages at desired price points are delaying purchases for many servicemen and women.”
Changes in year-over-year average sale price in the military markets analyzed range from a 9 percent increase in San Diego, California, to a 7.6 percent decrease in Panama City, Florida. Markets in Leesville, Louisiana, and Colorado Springs, Colorado, saw price increases averaging around 4.3 percent, while home prices in El Paso, Texas, remained relatively flat at a 1 percent increase year-over-year. This is compared to a national year-over-year sales increase of around 6 percent.
Below is a snapshot of dynamics in military markets across the country:
- El Paso, Texas, home to Fort Bliss, has stable buyer activity. In addition a strong rental market is reflected in the high desire for new construction, which is not keeping up with buyer demand.
- Similarly, a strong rental market in Panama City, Florida, where Tyndall Air Force Base is located, is attributed to a lack of new construction in the below $200,000 range. Also driving the rental market is an increased rate of deployment, an increasing sense of economic instability among military members, as well as an increased divorce rate.
- Strong buyer activity in Denver, Colorado, a city popular among young professionals, is driving non-military buyers into Colorado Springs, Colorado, creating an emerging hybrid community of military and non-military residents in the area, home to Fort Carson, Peterson Air Force Base, Schriever Air Force Base and the U.S. Air Force Academy.
- In San Diego, California’s military market, where Camp Pendleton is located, multiple offers and increasing home prices are most prevalent on homes below the $500,000 range, which is below the average sale price of $574,000.
- In Leesville, Louisiana, a market due to expand as a result of the recent expansion of Fort Polk’s footprint, the average sales price is $179,000, but the inventory sweet spot is considerably higher at $240,000.
About ERA Real Estate
ERA Real Estate is an innovative franchising leader in the residential real estate industry with more than 40 years of experience in developing consumer-oriented products and services. The ERA network includes approximately 35,000 brokers and sales associates and approximately 2,300 offices throughout the United States and 34 countries and territories. Each office is independently owned and operated. ERA Real Estate is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. ERA Real Estate information is available at: ERA.com.
SOURCE ERA Real Estate