March 29- Since the last report the Mammoth real estate market
appears to be influenced more by the weather than other factors like
the economy, stock market and the California power crisis. First came
a surge of snow-about 200 inches in just over 30 days. This made for
some great skiing, but snow like this normally puts a dampener on
real estate sales activity. Since the storms we have experienced
beautiful almost summer like weather with rapid snow melt around town
and quite a bit of spring fever amongst locals.
Through it all, real estate continues to sell at a steady pace in
most market segments. It is evident from closed escrow files that
stock market sideline money is being used to purchase real estate
here in Mammoth. Lower interest rates continue to spurn activity. And
the Intrawest sales machine has been in motion for the past 45 days
for the first North Village developments with two major mailings, a
return mail program, prospect calling and follow-up program, and some
soon-to-be but still unannounced marketing events including one that
may include the demolition of the first buildings in North Village.
Meanwhile everyone is watching the impact of the stock market slide,
the economy in general, and maybe more importantly the California
energy crisis. Lately, I've been thinking about advertising
properties here in Mammoth with "free air conditioning". While
properties in Mammoth rely heavily on electricity in winter for
heating, there are only a handful properties that truly rely on or
even have air conditioning in the summer. More importantly is the
overall impact on the California economy and ultimately the Mammoth
economy. So far, it appears that boomer demographics, cheap season
passes, the maturing of Mammoth as a resort, and the fact that more
and more people are discovering Mammoth are staving off any of the
negative external factors.
As for now, nobody really knows for sure if work will begin this
summer in North Village or at the airport. It's all like a big
bureaucratic and corporate poker game waiting for the cards to be
dealt. Those that are closest to it all certainly think things are
all moving forward.
Closer to the real estate market itself, the Crowley Lake area has
been especially hot in the past couple of weeks. I think locals and
second homeowners have seen affordability slip past them in Mammoth
proper and are afraid the same might happen in Crowley. The lots in
Sierra Springs are almost gone and so with them goes the opportunity
to purchase a subdivision lot under $100,000. In Mammoth, homes
continue to sell well with average and median prices well over
$600,000. There are attractive properties in the condominium
inventory but prices are up. Both average and median prices are well
over $300,000. There are still a few good lot buys under $300,000 but
that number is rapidly becoming the threshold for a quality single
family home site.
The Intrawest resale market remains flat with lots of units listed at
Juniper Springs Lodge, Sunstone, Timbers, and Mammoth Green. Nobody
seems to be concerned about their impact on the upcoming sales launch
for The Village. Maybe when the prospective buyers in The Village see
the prices and realize how much more affordable the resales are and
they get a true ski-in ski-out property too, these resales will start
to get gobbled up.
So the next few months should be interesting. Will we see the
beginning of major construction in North Village and the airport?
How much will the inventory build (as it normally does) between now
and mid summer? How will energy, stocks and the economy effect the
market? How many cheap season passes will Mammoth sell this spring?
And, will this summer-like weather in late March mean we'll have
superb powder days in May-while half the Town is in Mexico?
RE/MAX of Mammoth
Mammoth Real Estate Guide