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Feb. 16- While it has been less than 45 days since my last report,
taking a moment to file this report is critical. Mammoth's real
estate market has gone nuts in the month of February. Sales levels
(dollar volume) may be at an all time high. The accumulated effects
of the Village and gondola development, the accumulated effects of
the on-Mountain improvements of the past five years, the excellent
early snow conditions, the changing travel patterns since Sept. 11,
the ever evolving effects of baby boom demographics, the effects of
cheap ski passes, and quite possibly the effects of low confidence in
the stock market, are all playing on the local real estate market.
Also impacting the local real estate market: a huge "mail
drop" and marketing campaign by Intrawest announcing the Grand Sierra
Lodge (the flagship property in the Village) scheduled for a sales
event in early March and major articles about Mammoth in the New York
Times and USA Today.
The two most notable trends are the high level of activity in
the Chair 15 / Eagle Base Intrawest built properties and sales of
homes in the $600,000 to $1,600,000 range. The number of high-end
purchases made with cash is a BIG vote of confidence in the community
and marketplace.
The condo/hotel units at Juniper Springs Lodge and Sunstone
(Chair 15) that have sat stagnant for the past three and a half years
are now a hot commodity. Inventories are way down and absorption of
newly listed units is high. One of the probable reasons is buyers are
looking at similar type properties in the Village and seeing
significantly higher sales prices and extra long term (common area)
monthly fees. Also, the rental revenue generated by these properties
is finally moving up to anticipated levels.
The past few weeks have seen significant home sales in the
high end of the single family market. Many of these buyers are
actually getting good buys because the properties are selling at or
below today's replacement value (especially considering Mammoth's
higher and higher residential lot value and ever increasing
construction costs). While many of the high end residential customers
of the past few years have opted for constructing their own places,
buyers are recognizing the excellent opportunity and also getting
immediate enjoyment of these fine properties. Average price and
median price of homes listed for sale in Mammoth are now both well
over $1 million. And inventories of available "move-in" properties
remain low.
While just months ago the inventory of decent residential
lots under $300,000 was scarce, that number is now $400,000 and
heading towards $500,000. The median and average prices for
residential lots is currently over $500,000. With no more residential
subdivisions available in Mammoth, who knows where those prices are
going to go. The lots in Crowley in the $165,000 range look like good
buys.
General condominium inventory is up just a bit but with lots
of sales activity and ever increasing asking prices. It seems that
higher and higher priced condos are being listed and after about two
to four weeks on the market they are being sold. Selling prices are
definitely up. Many condo listings are contingent upon the sellers
finding satisfactory "move up" properties here in Mammoth. (Were they
reading one of my Q & A columns of a few months back?)
Other notable news: Snowcreek Phase VI is probably on hold
for now. While most of the grading is completed, Dempsey Construction
(the Snowcreek developer) has decided to get out of the construction
business and is trying to sell off the construction rights to the
project. At this time it doesn't look like it will go this summer.
Airport development is also on hold. The Town's environmental legal
counsel has advised to hold off until some of the court matters are
resolved. Apparently their opinion is (and it is supported by
Mammoth's knowledgeable attorneys) that the courts would not look
favorably on the Town if they moved forward with the "entitled"
developments while hashing out some of the still contentious issues.
The Village gondola will probably not move passengers up to
the Mountain this season. The gondola has passed it's State load and
operating testing but the operating components on both ends
(especially the Village end) aren't complete. But just the sight of
the cars moving up and down the cable has created lots of excitement.
The major redo of Old Mammoth Road scheduled for this summer may also
be on hold because of the State budget crisis. It is unknown whether
the State grant funding will come through or not.
Stay tuned! Now back to work.
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