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June 9 - Beautiful summer like weather has hit Mammoth and summer
tourism looks like it will keep pace with the high level experienced
this past winter and spring. Real estate activity has slowed a bit
but that is all relative. This company had record closings for April
and May, and in May, which is usually a very slow month for sales,
this company averaged a new sale and escrow every day of the month.
The level of construction all over town is something we have never
seen. The Village continues to look more and more impressive every
day. There is no doubt that the new construction companies involved
are very proficient. The Village Gondola is well under way at both
ends (Canyon Lodge and in town) and in between trees are being
cleared and concrete pads being formed for towers.
The other major construction is occurring off of Meridian
Blvd. at the school sites. The steel structure of the new college
building is going up and across the street the new middle school is
looking equally impressive. Granite Construction has begun a major
project to repave Hwy. 203 from Hwy. 395 to Whiskey Creek. Lots of
water utility lines and drainage lines are being replaced prior to
the repaving. The Gateway Center (Rit-Aid, Subway, etc.) at the entry
of town is receiving at complete facelift in a mountain rock and
timber theme. The Old Mammoth Road remake hasn't started but is due
to begin at any time. A few other smaller commercial building have
started or are about to begin construction in town.
Single family construction continues at a steady pace and
there are several "spec" builds in the $600,000 to $2,500,000 price
range. The only oddity is at Snowcreek where there is no real
construction going on--Phase 5 is completed with only a handful of
units left unsold but there is major clearing and grading occurring
on the Phase 6 site. Reports are that some construction may begin on
that site but that Dempsey Construction has gone back to refine their
designs for Phase 6, mainly to reflect the changing market conditions
demanding larger units and more design detail. Snowcreek is taking
the break and making lots of nice upgrades to their existing features
like the entries, signage and landscape, upgrades at the Athletic
Club, etc.. Meanwhile Intrawest has started a campaign to improve the
projects they have already built, sending a team from Vancouver to
review and address the existing owners concerns and make noticeable
upgrades to their projects.
Interestingly, there have been a number of recent articles in
real estate trade publications about consumer trends, and the big
issue today is that consumers are demanding a superior product over
superior marketing. The consumer has been watching television
programs like "This Old House" and spending more time at Home Depot
and they are far more educated about construction and finish quality.
The brokers in this company are highly supportive of this trend and
it will be interesting to see how this trend impacts future
developments here in Mammoth.
A June 3 front page article in USA Today headlined "Demand is
driving up prices of second home". The article emphasized many things
that have been discussed here--namely demographics, lack of quality
supply, diminishing support of stock market investments, tax
advantages, quality of life issues, etc.. Probably the most important
point of the article: over the next 10 years the demand for second
homes could justify the construction of two times what is being
constructed because of the lack of desirable locations. "The likely
result: a continuing imbalance between supply and demand and rising
prices." .....Another interesting article while many of the popular
financial magazines are beginning to call for a bursting of the real
estate bubble.
As far as Mammoth real estate goes, inventory remains on the
low side although we did see this past week a little increase in the
condo listings. But we have not increased like we normally see this
time of year. Listing prices are definitely moving up and anything
listed at what seems "reasonable" goes to contract quickly. Homes and
residential lots are going out-of-site, but there are still some good
buys in the $600-700K range for homes and $350K for lots. Low-end
condos continue to creep up and the best buys are the early 80's
built townhomes in the $300K range. Residential lots in Crowley have
jumped, mainly because of the affordability and scarcity.
One point of interest, in my company's efforts to market the
new LakeRidge Bluffs subdivision in Crowley Lake (which we are still
taking back-up reservations for) we have seen a large increase in
potential buyers that fit the mold of the more affluent, second
homeowner, and retirement oriented than we have ever seen interested
in the Crowley area before. In the past it has been primarily the
young local families interested in that area.
The past few weeks we have seen the winter "lookers" leave
the market but obviously there are buyers poking around because
properties are selling in what is normally a slow real estate period.
Combine this continued level of activity with low inventories,
attractive interest rates holding steady, and the ongoing, impressive
visual impact of what is becoming reality in the the Village, and one
has to wonder what the second half of 2002 will bring for the Mammoth
market. It shall be interesting.
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