Yesterday I compiled my monthly market reports and last month (June 2018) the average final selling price of detached homes in Marin County was right around $1,850,000. The average original asking price was about the same, even though 116 homes sold over their original asking price. Of the 236 homes that sold, 67 were paid in cash–no loan.
Since my expertise is in the negotiation and sale of residences, and not the financing, this got me wondering what that looks like in terms of monthly payments for those that do obtain financing, so I headed on over to a handy online mortgage calculator and it turns out to look something like this:
Purchase Price of $1,850,000.
20% down of $370,000.
Loan Amount of $1,480,000.
Assuming 5% interest rate the monthly mortgage payment (principal and interest) would be $9376.79. (If you could get 4.625% then the monthly payment would be $9041.10)
Monthly property taxes would be about $1231.83.
Monthly homeowners insurance is about $539.
So, principal, interest, taxes and insurance (PITI) is about $11,147.62 per month. Or $133,771.44 after payroll/income tax dollars per year.
(According to MLS the average rental of detached homes in Marin County is about 2000sf and going for $6069 per month, which would require a relative annual income of about $218,000.)
In order to qualify for this average Marin County home your income would have to be around $400,000 per year or $33-34,000 per month. Which is interesting because that’s about four times the average income in the County.
If you’re thinking about the mortgage interest deduction, per the IRS beginning in 2018, taxpayers may only deduct interest on $750,000 of qualified residence loans. The limit is $375,000 for a married taxpayer filing a separate return.
At this point you might be asking yourself exactly what does one get for this average price in Marin County, and here are the homes that sold last month between $1.8-1.9M.
If you are curious what your home would sell for, contact me today for a no obligation assessment.
If you want to see everything that’s currently available for sale in Marin County, click here.
If you’re more interested in Wine Country, click here.