PANAMA CITY, Fla. – Any servicemember who has made a career in the military can tell you, moving is all part of the job.
And finding places to live can be tough.
ERA Real Estate said some emerging trends among military homebuyers in a number of markets, including Florida, note that each military market has its own distinct drivers, from rental activity to new home construction to time on market.
Low interest rates and declining inventory — factors at play in many nonmilitary markets across the country — are affecting military markets as well.
According to ERA, the average price of a home in the Tyndall Air Force Base market is now selling for $183,154 up from $169,776 in 2011.
Most notably, fewer people are renting in many military markets as rising home prices increase home equity for homeowners who may have previously been under water on their mortgages and were unable to purchase after relocation, according to ERA.
ERA claims that renting is no longer best option for military personnel because of the dropping inventory and rising rental prices.
“In many regions across the country, a classic supply and demand scenario is creating a seller’s market but the impact of increasing prices on home equity is benefiting potential buyers as well,” said Charlie Young, president and CEO of ERA Real Estate in a press release. “This includes military housing markets which, like most of the nation, are seeing prices rise as inventory declines. Renting — previously a safe option for military personnel who move frequently — is giving way to buying as rents rise. We are finding that in many markets, military clients are seemingly more willing to purchase than they were a year ago.”
Last year’s ERA report claimed military markets were not immune to the broader macro-economic pressures playing out at the time across the entire industry including price declines, negative equity and tighter lending standards.
As a result, ERA said, rental activity was high, a trend that appears to be reversing in 2012.
The ERA Real Estate 2012 Military Markets Report identifies factors affecting military markets in the following locations: Panama City, Colorado Springs, Colo., Jacksonville, N.C., Fayetteville, N.C., Leesville, La., and San Diego.
All data is based on Multiple Listing Service figures and courtesy of local ERA Real Estate brokerages in the respective military markets, according to ERA.