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December 13–Just as Mammoth moved into the traditionally slow period between Thanksgiving and Christmas, local real estate activity has launched with the sales board in our office showing more sales already this month than in whole of November and far more than in October. And none of those sales represent what had dominated the previous months–sales and re-sales of Village units. The high-end of the market continues strong with cash home buyers in the 2 to 3 million dollar range and solid activity in the high-end of the condominium market. But there are still no major "triggers" in the market horizon so we are anticipating solid and steady sales in 2005, although most buyers are taking their time, and negotiating the best possible prices.
The Intrawest sales force plans to market the Westin flagged Village property all winter at their new sales office located in the Village. They plan a major sales event likely in early spring. Meanwhile, the 80/50 fractional club resort will be marketed from a location underneath the Village gondola. That project, located adjacent to the gondola at the previous Village Market location, recently erected a massive construction crane, putting everybody on notice that this project construction is under way.
The 80/50 sales-force has been taking reservations for some time now and those reservations will shortly have to go "firm", meaning increased deposits will become non-refundable. It will be very interesting to see how this all progresses. This is the first of its kind in Mammoth and many of the major projects from here on out are structured in this fractional/club style of ownership. Speaking of fractional/club properties, the first home in the Tallus project is under construction and their sales office on Meridian Blvd. should be open for the holidays.
Besides the real estate wars destined this winter in the Village, the Village is looking great now that the Grand Sierra Lodge approaches completion. That quadrant (including GSL, Lincoln House and White Mountain Lodge) is looking more and more like a place to be rather than a construction zone. A few more stores are open and a couple more restaurants are due open shortly.
Speaking of looking great, the Old Mammoth Road improvements are finally completed and the snow removal along the road sidewalks is being diligently completed by Town public works. With the addition of safe sidewalks, quality lighting, banners, great shuttle stops, etc., and the improvements completed by the individual property owners along the street, Old Mammoth Road is now a quality pedestrian environment. Many of the best retailers and restaurants/bars in Mammoth are located in this corridor. The best real estate company certainly is. Things should only get better.
The Mammoth Airport issues become more convoluted every day. Town officials are heading back to Washington DC to meet with the FAA in the next week. I don't want to get into a lengthy discussion in this forum but one thing I do know is that the Mammoth Airport continues to see an impressive and increasing amount of private jet traffic, both charter and fractional. So while all of this battling over the future of major air service continues, the growth of smaller air service is significant.
A recent exhibition of new potential plans for Eagle Base included an approximately 60-unit condo/hotel and an approximately 24-unit residence (fractional) club occupying the parking lot at Chair 15. The parking lot property is currently owned by Mammoth Mountain. The plans also had the new base lodge and children's ski school positioned much further away (to the east) from the base of the existing chairlift. The plan suggests extensive underground parking at this location.
The Town's major affordable housing projects have been slowed by early snowfall but their scale and size are impressive. There seems to be new controversy over who is qualifying for this housing, but when isn't there controversy over something here in Mammoth. While the Town keeps building deed restricted housing, local contractors keep building affordable, market rate, for sale, housing at a variety of locations around town. These units range from $325,000 to $625,000 depending on size. This might not seem that affordable but to acquire something new, quality built, energy efficient, and with a garage, is a good thing. Hopefully the second homeowners won't buy them all up.
As far as market specifics, inventory remains on the higher side relative to this period in the previous years. Older condos, especially in less desirable locations or of poorer construction quality, seem to be the most vulnerable to diminishing values. Newer and quality properties are holding their-own. Buyers are negotiating over extended periods of time if sellers aren't budging on prices. Some buyers are walking away from stubborn sellers. The buyers are simply more discriminating than they were a year ago. But buyers are still recognizing the value of low interest rates. Sellers who need to sell need to drop their prices until they find the price that will make buyers move. In many cases that is significantly lower than where it was a year ago. Mammoth has become a very price sensitive market unless the property has quality features and benefits.
Like I said earlier, there are no foreseeable "triggers" on the local market horizon that will create a frenzied market. Buyers have become "bubble conscious" whether there is a bubble or not. The buyers today are buying because they want to be here, not for speculation, which brings a nice stability to the market. This new clarity in the market is to be relished. It's like unconditional love. New owners are just glad to have a place of their own and to be able to come and enjoy, they don't need to hear that it has appreciated 10% since they bought it.
Happy New Year!
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