Home Sales Rise in Military Towns

Homes near military bases are escaping a slowdown in sales due to the wars in Iraq and Afghanistan.

For instance, home prices in Clarksville, Tenn., the nearest residential area to Fort Campbell, Ky., rose 6 percent in the second quarter of 2008, compared to the previous year, while average home prices in the U.S. fell a record 4.8 percent during the same time period.

In Fayetteville, N.C., next door to Fort Bragg, the average price for an existing home was up 5.2 percent from a year earlier.

In Minot, N.D., where Minot Air Base, is located, average home prices rose 6 percent in the second quarter, In August, they were 10 percent higher compared to prices in August 2007.

The Veterans Administration says use of its home loan program has increased 34 percent in the last 12 months.

Source: The Associated Press, Kristin M. Hall