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June 14- Mammoth's real estate market is showing typical June conditions, which is good news for astute buyers looking to make sound acquisitions in the Mammoth/southern Mono County market. While "newby" real estate agents are beginning to panic because of the lack of sales activity, the agents and investors that understand the local market know that this is the season when sales slow due to decreased visitor traffic in town. Conversely, real estate inventory increases following the craziness of the winter months and the fact that many sellers believe their properties show best during the non-snow months. With inventory traditionally peaking around Labor Day, the next couple of months will provide buyers the best selection of prime properties to choose from.
Those prime properties come on the market and get picked away at this time of year without the "feeding frenzy" mentality we have experienced in the past few years. Following Labor Day, the demand traditionally accelerates in anticipation of winter recreation and owner usage. And inventory decreases. So if you are a buyer looking for a quality property in Mammoth, make sure your agent is paying attention and knows what you are looking for because the next couple of months are "opportunity time".
Mammoth, in general, experienced a slow spring. Unusually warm weather in March and a literal shut-down of snow production after that brought the ski season to an early demise, although in classic Mammoth fashion, the skiing was excellent well into May. Weather was cool and windy in May, so summer is just starting in the high country. A little slower pace is certainly welcome for most. Everybody is enjoying vacations, graduations, weddings and just catching up.
So here's what is going on. A good deal of the recent real estate activity is move up, and rightfully so. The bottom end of all market segments continues to attract great interest and there are good "value" buys in the middle. Interest rates remain very favorable and many buyers and re-financers are utilizing the 5/1 and 7/1 ARM loans and getting some amazing interest rates.
The next onslaught of real estate promotion in Mammoth is interval ownership. It is big in the resort/second home market and it is coming big to Mammoth. The 80/50 project next to the Village gondola will start construction shortly and promotion for Tallus is beginning. These will be very high-end "club" properties with primarily one-fourth and one-sixth ownerships and lots of premium ownership/membership benefits. They are separately deeded interests. There will be lots more to come on all of this.
Snowcreek Phase 6 has broken ground this week with foundation forms popping up but the best news out of Snowcreek is that the land trade for the back nine of the Snowcreek golf course is finally completed. No word yet on when that construction will begin but there are plans in the works for a hotel/resort/village area slated adjacent to the new course (on privately held development land) so just wait, this will be special and a great compliment to Mammoth.
Intrawest is about to start marketing some new projects including one on the Sierra Star golf course called Solstice. They have plans to bring 250 units to the market in the next three years. And history has shown that when the Intrawest marketing machine goes into motion the market accelerates in activity and appreciation.
Meanwhile, single family home construction is cranked back up, some small independent condominium projects are underway, one on Main St. and one on Meridian Blvd., some new affordable housing is underway and on and on.
As of today, condominium inventory is at 130 units with the lowest price at $205,000. There are clumps or concentrations of inventory from certain projects that skew the numbers somewhat. The best buys appear to be in the $500K and $600K price range. If the concentrations of inventory sit for a couple of months there might be some good negotiating to be done within those market segments. Like I said before, some of the best new listings in the past 30 days have already been picked off. The total inventory is the highest we've had in a while, but you've got to look closer to see the real picture.
There are 58 single-family homes on the market with the lowest price being $529,000. There are some good buys in the $700K range but there is also plenty of over priced, substandard properties on the market. This market segment seems to have some sellers with some very high expectations. Again, a closer look is warranted for the real picture. Availability of single-family vacant lots is grim, with only a couple under $500K worth owning. I don't see much change in that picture.
A recent article in Barron's didn't mention Mammoth but certainly gave credence to the continued strength of the resort and second home market. But the article did touch on one point that keeps Mammoth in the investment spotlight–proximity. Proximity to the owner's primary residence is becoming key. Being within a 3 to 5 hour drive is increasingly valuable. For most southern Californians, getting to and through an airport and a flight is about the same time allotment as driving to Mammoth. And becoming even more important is doing it on a whim, like when the weather or snow conditions are just right. Proximity also refers to proximity to family members. Aging boomers want to share their resort home with their children and grandchildren, and also want at least be within reasonable distance to visit them at their home. All of this gives Mammoth's future increased strength from both baby boom and southern California demographics.
So the market is positioned for the start of summer. Activity usually doesn't heat up until mid July, after the holiday and Jazz Jubilee. Between now and the end of July will be an excellent time to be looking for the quality opportunities in Mammoth real estate. And I've got to get back to it.
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