How Much Farther Will Housing Prices Fall in Southern Marin CA

By
Real Estate Agent with Decker Bullock Sothebys Realty

One way to evaluate how much farther prices will have to fall in Southern Marin County CA is to approximate average incomes in each town and to apply some basic financial planning concepts to determine what average prices should be

 Approximate 2009 Average Incomes:

  • Incomes in Tiburon:           $270,000
  • Incomes in Mill Valley:        $180,000
  • Incomes in Sausalito:         $167,000

 Example:  The average family living in Homes in Tiburon CA  earns $271,500, pays $38,000 income tax, leaving them with $233,500. They spend 30% on mortgage interest, could afford a $70,000 annual mortgage (rate 5.5%), and a $1,274,500 mortgage. The average homeowner has 35% home equity, so Tiburon can sustain an average home value of $1,960,000.

 

Projected Average

Current

Difference

Tiburon

1,960,157

1,994,000

+2%

Mill Valley

1,331,00

1,152,000

-13%

Sausalito

1,230,000

821,500

-33%

 The result shows that Tiburon home prices are very close to where they should be, and that homes in Mill Valley CA and Sausalito CA Real Estate prices are substantially below what those towns could support from a financial planning perspective. Please see my website for more information.

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Topic:
Real Estate Market Trends
Location:
California Marin County Tiburon
Tags:
mill valley ca real estate
homes in tiburon ca

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