Editor's Note: This is the first in a series examining the housing market, particularly for the military, in the Jacksonville area.


The new year has brought U.S. military personnel a welcomed increase in their Basic Allowance for Housing.

The tax-free housing allowance is provided to military personnel with or without dependents who are authorized to reside off base at government expense.

Paid on a monthly basis, the BAH for local military families varies depending on the E, W or O class and the assignment location. The number of dependents also is taken into consideration.

Authorized by the Department of Defense, the BAH is determined by a number of factors for a specific base location. Entering into the equation is national and regional housing cost along with the number of current residential vacancies.

Locally, the new BAH levels for those stationed at Camp Lejeune and Cherry Point vary from one another.

An E-1 at Camp Lejeune now receives $848 each month, an increase of $33. The same class personnel at Cherry Point saw the BAH increase $83 to $998.

At the other end of the scale, an O-7 officer at Cherry Point can now receive a BAH of up to $1,660. Their counterparts at Lejeune get $1,472.

But, even with the increase in BAH, the question becomes whether home ownership is financially feasible for military personnel and their families stationed in eastern North Carolina.

According to Larry Robinson, loan officer with Atlantic First Mortgage Corp., today's interest rates are buyer friendly.

Military families buying in Onslow County and using a VA loan can expect the monthly mortgage payment on a $150,000 home (with 5 percent down) to run about $975. This figure can differ depending on the municipality where the home is located.

Nationwide, the real estate market has been considered "soft" as a result of new home construction and sales being down from recent years. This is a key factor in current interest rates of about 5.5 percent.

The large military community, however, plays a major role in the health of the real estate market for coastal North Carolina.

"I'd say we certainly are buffered from the national averages because of the military aspect of our community," said Tara Walcott, a Realtor with Military Relocator Real Estate and Property Management in Jacksonville.

According to a recent finding on the Onslow County multiple listing service (MLS), the median price of homes on the market in 2007 was $202,990. Figures also show that the median price of homes actually sold in Onslow County was $145,000.

In 2007, the median national average for a single home was $220,800.

"Here in Onslow County we have not had the downturn the rest of the country has seen," said Sue Cruddas, owner/broker of the Sue Cruddas Real Estate Team.

Again, the large number of military families in the area can be seen as a key factor for the local real estate market's remaining stable.

One real estate agent reported that of all her sales last year, only two were by civilians.

To this point, home builders have done a good job of constructing houses financially available to the military.

"We (in Onslow County) have a wide variety of good starter homes," said Sheila Pierce, owner/broker, GMAC Home Team Real Estate.

She said approximately 72 percent of local homes on the market are priced between $100,000 and $200,000.

These prices seem to be a good match for local military personnel seeking to purchase a home.

"Home sales have been strong, while at the same time prices have not drastically risen," said Ellen Hough, broker in charge at Exit Realty, Jacksonville.

The combination of an increased BAH, low interest rates and availability of affordable homes has led to a viable local real estate market.

"The military is definitely the economic engine for Onslow County," Pierce said. "Because of this, there have really been little economic fluctuations in the local real estate market," she added.

Even with military personnel coming and going, local real estate experts believe buying a home can be a wise choice.

"I definitely feel (purchasing a home) is still a smart buy," Walcott said.

She went on to say that purchasing a home makes financial sense as long as the buyer plans to keep the home for at least two years.

The local real estate market can be expected to spike upward as a result of troop buildups at Camp Lejeune and Cherry Point are implemented.

Cruddas reported that the real estate industry in Onslow County wasn't quite ready for the last troop increase several years ago.

"It wasn't unusual to have two or three buyers after the same house," Cruddas said.

From Wilmington to Beaufort, new housing developments are a common site. While some of these homes are not marketed directly toward military families, the fact is that new home construction is prevalent in the region.

"The county is starting to spread out and people are willing to commute for the right home," Cruddas said.

But some local real estate experts believe developers need to watch their step in moving ahead with new housing developments, especially those with homes starting over $200,000.

"Some could get caught with their pants down," said Oseola Elliss, owner of Military Relocator Real Estate and Property Management.

But to date, homes in the Jacksonville area continue to sell at a brisk pace.

Although Pierce admitted that the current real estate market is not "in the feeding frenzy of a couple of years ago," she did say the market is strong.

"Recent statistics show that the average house (in the Jacksonville area) remains on the market for 59 days. That's very good," she added.

Evidence of a strong real estate market is the sheer numbers of real estate companies and agents found working in the eastern Carolina region.

There's certainly no shortage of professional help for military personnel looking to purchase a home.

While numbers vary as agents and agencies come and go from the industry, the Jacksonville Board of Realtors reported it currently has a membership of 538.

In addition, there are many agents not affiliated with the Jacksonville Board of Realtors.

The current Jacksonville/Onslow County Embarq Yellow Pages lists 164 real estate companies - many with multiple offices.

The private sector isn't the only source of help for military families pursuing the purchase of a home.

Both Camp Lejeune and Cherry Point MCCS offices offer courses and counseling for prospective home buyers and sellers.

The Department of Veterans Affairs has long made guaranteed loans available to service personnel.

Today, the VA basic no-down-payment home loan entitlement is $36,000. For home purchase loans exceeding $144,000, additional entitlement up to an amount equal to 25 percent of the home's appraised value - with a maximum loan amount of $417,000 may be available.

Not all members of the military will qualify for the guaranteed loans.

Along with financial assistance, the VA also provides would-be home buyers with prepurchase counseling. The VA does not require borrowers to take part in the counseling as part of eligibility.



Contact Kevin Forsythe at kforsythe@freedomenc.com, or by calling 910-353-1171, ext. 8449. 

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