Marin’s real estate valuations increased 6.5% in 2021, providing good news for public budget managers.
Marin’s asset valuation role was $ 95.24 billion on January 1, up from $ 89.38 billion in the previous year, and the county announced this month after the role was certified. Assessment roles are used to calculate the amount of property tax paid by marine residents.
The higher the rating roll, the higher the tax revenue for the county government, local school districts, and special districts. All of these receive a portion of their revenue. The county government relies on fixed capital taxes for about 40% of its general revenue budget.
Under Proposal 13, the California property tax hike limits annual inflation to 2% or less unless the property is sold.
Marin County Councilor-Recorder-County Secretary Shelley Scott said the increase in valuation rolls reflects the booming real estate market in Marin in 2021.
“The low interest rates in 2021 combined low housing demand and low inventories boosted both sales volume and home prices,” Scott said.
She pointed out that the median home in Marin County exceeded the $ 2 million threshold for the first time in April of this year.
A total of 3,915 homes were sold in Marine last year, an increase of more than 20% from the 3,251 homes sold in 2020.
Sales of condominiums and town homes grew the most, rising nearly 49% from 652 in 2020 to 970 last year. Average selling prices for marine condos and town homes rose more than $ 7% from $ 700,000 in 2020 to $ 750,000 last year.
Last year, Marine sold a total of 2,945 detached homes, an increase of more than 13% from 2,599 detached homes in 2020. The average selling price of Marin’s detached homes rose about 14 last year to $ 1.65 million. % From the previous year’s $ 1.45 million.
Scott said that part of the demand for residential real estate in Marine could have been caused by the COVID-19 pandemic, with more buyers working in more homes in search of more living space. It states.
According to Scott, another factor that led to the increase in sales last year was the passage of Proposal 19 in 2020.
Proposal 19 enhances the portability of Proposal 13’s property tax protection for homeowners 55 and older. The bill allows up to three trips in a lifetime and does not limit the location of new properties.
Proposal 19 also changed the tax on the transfer of family property. Instead of being excluded from revaluation, children who inherit a home or other property will receive a new tax bill based on the current market rate valuation, unless the home is the primary residence.
Previously, under Proposal 13, in such cases, the valuation increase was limited to a maximum of 2% per year.
Home renovations and improvements have also been added to the rise in asset value figures. Throughout the county, Marin has increased new construction permits by more than 12%.
Scott said rowing ownership also increased in 2021. A record number of boats have been moved or moored to Marine and evaluated as part of the evaluation roll. The value of the boat increased as new production could not keep up with demand due to supply chain constraints associated with the pandemic.
At a budget hearing in June, interim budget manager Josh Swedberg told the supervisory board that the county expects a 6.5% increase in the asset valuation role for fiscal 2022-23.
“This is a significant change and the budget has improved significantly,” Swedberg said.
Over the last two decades, marine asset valuation roll growth has averaged around 5%. During the Great Recession, the value of rating rolls has dropped dramatically. Since then, roll value growth has recovered, hitting a recent high of 7% in 2015-16 and then dropping to 3.95% in 2021-22 during the pandemic.
Swedberg told supervisors that evaluation roll growth is expected to decline next year or so.
Patty Korn, a marine real estate agent at Compass, said the marine housing market has been quite cold since its peak in April.
“Currently, year-over-year sales are down 17%,” said Korn. “The market is very different from April.”
Mr Korn said some of the slowdown in sales could be due to the fall in summer.
“People are taking their long-awaited vacation, and at the same time, there is a big pause now as interest rates are rising and the stock market is falling,” she said.
According to Freddie Mac, a federal mortgage lender, the US weekly average of fixed-rate mortgages for 30 years was 5.51% as of Friday. It was 2.88% a year ago.
Some buyers may have been priced from the market, as the average selling price of Marin’s homes has risen 13% since December to $ 1.9 million, Korn said.
During the pandemic, less people went to the office and fewer people stayed at home than eating at a restaurant or shopping at a mall, effectively stopping the sale of commercial real estate. ..
Shane Blair, the county’s deputy assessor, said the sale of commercial real estate is still so rare that it is difficult to accurately assess its tax value.
According to Blair, Novat’s 63-acre former Firefighters Fund campus, jointly purchased by San Francisco-based Bay West Development and Colorado-based Forum Investment Group in January 2021, is worth $ 82 million. Assigned. The value of the property before the sale was $ 82.8 million.