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Huntsville AL Real Estate Market Trends – Dec 2012

By: Huntsville Real Estate Expert Mike Manosky On December 21, 2012

With the gift-giving season in full swing, some parents are considering a sizable and meaningful present for their children and/or grandchildren – real estate. This is the sign of a solid trend, with a growing number of parents are currently helping their children purchase homes, whether they’re buying these homes for their sons and daughters outright, helping them pay for closing costs, or coming up with the money for their down payments.

While such a gift is certainly in keeping with the spirit of the season, those who are giving or those relying on monetary donations from their parents or family members to buy real estate should follow some fairly simple underwriting and IRS rules.

  • You can gift a total of $13,000 a person without being taxed on that money.
  • The person giving the gift must file a form 709 (gift tax return) for any gifts over $13,000 per year per recipient.
  • Buyers applying for a conventional mortgage loan must use their own funds for at least 5 percent of their down payment.
  • When buyers are providing a down payment of at least 20 percent of their home’s purchase price, they can rely on gift funds for the entire down payment.
  • Mortgage lenders will need to see documentation showing the origin of gifted funds.
  • A gift of real property is accomplished through a deed. A warranty or grant deed is normally used, but in some cases a quitclaim deed may be appropriate. You will identify the property being transferred and sign, notarize, and register the deed as clear evidence that the property has been given to your children.

As with all major financial decisions, you would be wise to consult your accountant and/or tax attorney before gifting monetary assistance for the purchase of real estate or the property itself.

Take a look at sales figures in our local real estate market for November.

Madison County/Huntsville AL Real Estate Sales Statistics

Huntsville AL and Madison County saw a decrease of 0.002% in sold listings in November 2012 when compared to October 2012. The average list price increased by 3% to $208,061 and the average sales price increased by 4% to $192,388.  The average price per square foot increased slightly when compared with October 2012, and market times decreased by 3% or 25 days.

Date Sold Listings Average List Price Average Sale Price Percent SP/LP Average DOM Average Price Sq Ft
November 2012 394 $208,061 $203,123 96.60% 79 $83
October
2012
395 $200,304 $193,464 96.46% 91 $82

 

For more information about Huntsville AL real estate, please visit MoveToHuntsville.com or call me at 256-508-0211.
To begin searching Huntsville AL homes, please use my complimentary MLS search.

Statistics are based on information for the North Alabama Association of Realtors and are deemed reliable but not guaranteed.

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