Tip - Housing market near big military bases doing fine

While overall national home prices and sales are down, there are pockets in the United States doing well. Among them are military towns dominated by big bases, helped by steady wartime employment and by more moderate increases in values and less reckless lending than many boom areas saw during the bubble. The Associated Press reviewed housing data in four states with big military bases and found nearby communities fared better than national averages. Some towns have even seen average home prices rise, bolstered by increased recruitment and steady defense-related employment during the wars in Iraq and Afghanistan. In the Florida Panhandle, where a saturated housing market saw sluggish sales last year, soldiers at Eglin Air Force Base said the downturn has made it easier for them to purchase homes in an area where demand is bolstered by Gulf Coast beaches. The AP looked at sales figures from selected smaller communities near large bases in the Southeast, which has a major military presence, and in North Dakota, away from the balmier climates that might attract new residents. Average U.S. home prices fell a record 4.8 percent in the second quarter compared with a year ago, with some areas including California and Nevada falling between 14 and 16 percent, according to the Office of Federal Housing Enterprise Oversight. Valerie Hunter-Kelly, a Clarksville real estate agent whose husband is retired from the Army, caters to clients who are mostly Army families that move to the area. VA loans boomingWhile other markets tanked after homeowners took subprime loans that they couldn't afford, active and retired members of the military can use private loans guaranteed by the Department of Veterans Affairs.