Published: Tuesday, August 24, 2010, 8:27 AM     Updated: Tuesday, August 24, 2010, 8:37 AM

HUNTSVILLE, AL. - For the first time in six months, home sales in Huntsville and Madison County declined in July, a drop many Realtors and executives attribute to the expiration of the federal tax credit for homebuyers.

But the July single-family home median price - the figure at which half of the homes sold for more and half sold for less - was $200,000, an increase of 6.1 percent from June ($188,500) and 14.29 percent from last July ($174,900).

According to data released Monday by the Huntsville Area Association of Realtors, sales decreased by 32.5 percent from June to July, from 523 homes to 353 in total sales. There was also a 28.97 percent drop from last July when 497 homes were sold.

"I look around the country, and I see the bigger markets - Chicago, Houston, Los Angeles - that saw a significant decrease in July,'' said Oscar Gonzales, the CEO of the Huntsville Area Association of Realtors. "Typically, we have been bucking the trend.''

For much of the spring and into the early summer, while homebuyers were eligible for the federal tax credit, local sales eclipsed most national figures.

To qualify for credits of up to $8,000, buyers with signed contracts had until June 30 to complete their purchases.

Locally, those credits accounted for an extended rise in sales - 2.5 percent in February, 65 percent in March, 2 percent in April, 22 percent in May and 3.98 percent in June.

Gonzales cited three factors for the decline in July: The expiration of the federal tax credit, the national economy and the local layoffs from cuts in NASA's Constellation program.

Yet, Gonzales is still confident.

"I don't think it's anything to be alarmed about," Gonzales said. "I don't foresee any major hiccups in our market at all."

Rob Hatchett, regional general manager of Crye-Leike, remains optimistic, too.

"Because of the tax credit, we knew a lot of closings that would have been in July got bumped into June and May to take advantage of the tax credit," he said. "This was an expectation, that there would be a low amount of volume. So many got rushed up."

The number of available properties - active listings - increased by 2.46 percent in July, compared with June and 17.41 percent compared with last July.

The number of average days on the market rose by 29, from 76 in June to 105 in July - an 8-day increase from last July.

"We're in nine major cities, and we recognize that Huntsville is the best market of those cities," Hatchett said. "Because of the government money, it is better than the other markets we're in.

"Any national news or news about the South, Huntsville is the least hard hit of any of the major cities. Huntsville is the most promising."

 

 

Because of that promise, Gonzales expects Huntsville to continue to defy national trends.

"We're not immune, but we're in a better position than other parts of the country," he said. "But when they hear (news about the economy) from national media, they are shy."

                         

 

Tax Credit for Homebuyers

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Versus Tax Deduction

It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to  $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

In addition, you may be able to benefit from additional housing related provisions, including the following:

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Tax Incentives to Spur Energy Savings and Green Jobs

This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings

This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance

This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

As always, if you have any questions about your specific situation or would like to discuss how you may benefit from this program, please call or email me. I’ll be happy to sit down with you.

 

Have you visited The Alabama Veterans Museum and Archives in Athens, Alabama?

 

This is just one of the patriotic activities available for residents in the Huntsville, Alabama metro area.  In this area we are privileged to have the freedom to enjoy life, rear a family, retire –purchase real estate in Huntsville, Al ‘s metro area.

The News Courier- Congratulations to the Alabama Veterans Museum and Archives for winning the Alabama Mountain Lakes Tourist Association award as the 2009 Attraction of the Year.

 

The award is one of 11 PEAK Awards presented during the AMLA Annual Meeting at Quail Creek Golf Resort in Hartselle, Al on September 24, 2009.

 

The group of awards is the highest achievement in North Alabama tourism, honor individuals and organizations that had had a major impact on tourism in North Alabama.

 

More than 3,600 visitors annually visit the Alabama Veterans Museum and Archives.
Dedicated to preserving military history and serving as archives to store artifacts from the Revolutionary War to the present, the museum is not only here to entertain, but also to educate. The facility is toured by many school children each year.

 

“Call to Veterans” was one of the more recent events hosted by the museum where veterans from all over northern Alabama were thanked for their service by being honored with a free meal. More than 400 veterans attended the event and toured the facility.

 

The museum is staffed with volunteer tour guides and a full-time museum director. The museum also preserves history, educates our children and honors those who fought to keep us free.

 

 

Dana Jennings, president-CEO of the Alabama Mountain Lakes Tourist Association states, “The North Alabama region has positioned itself as a tourist destination and sporting mecca and this recognition would not be possible without the dedication of our industry professionals. Tourism contributed over $2.1 billion to North Alabama’s economy in 2008 and supported over 30,000 jobs in the 16 northern most counties of Alabama.”

 

For a full list of winners, visit www.NorthAlabama.org.

 

The Alabama Veteran’s Museum and Archives is located at 100 Pryor Street, W. Athens, Al  256) 771-7578.

Marshall Space Flight Center in Huntsville, Al. during the 1960’s and 1970’s was at the center of the Apollo program. Dr. Wernher von Braun and his team designed and developed the Saturn I and the Saturn V right here in Huntsville, Al. The first Apollo astronauts were propelled into orbit by the Saturn V and later to the moon. NASA  has 50 years of expertise and now the Constellation program is sizing new equipment  for future space exploration.

Marshall now has the responsibility of designing and developing a new generation of rockets and space vehicles to carry the next generation of beings to the moon, Mars and ……………………Needed was an engine that was reliable, robust and would perform.  Surprise!!!The J-2  engine that propelled the Saturn V fit the bill-even 40 years later. After testing and a little simplification and cutting edge technology we now have the  J-2X. 

The Ares family of vehicles is being designed to use common components to keep the costs down.  Since the middle of 2005, the Constellation Program has grown to around 3,700 workers; half of them are from the Tennessee Valley.

In the earliest days of the project a list of Team Norms was created. First thing on the list was “Have Fun!”  It’s a tough business and doesn’t allow for many failures. You can’t get the job done if people aren’t exited and having fun. They aren’t there to just build a rocket, they are there to explore. The driving mission is to make it as safe as possible for the crew and as affordable as possible so they can do more missions.

Isn’t it exciting, North Alabama? Congratulation, the first crewed lunar excursion is scheduled for 2020.