February 6, 2023
Mammoth Lakes Real Estate Market Update for February 2023
2023 is picking up right where we left off in 2022. The Mammoth Lakes real estate market can be summed up in a few key points.
Inventory is near record lows for both condos and single-family homes. Historically there is an increase in inventory in the spring. January's record breaking snowfall will extend the winter season, causing the seller to hold on to their properties longer for personal use and rental income. In 2017, the most active quarter was 3rd quarter. Some predict the August to October will be the most active real estate period this year.
It all comes down to supply and demand. Prices will continue to hold if inventory remains low.
The conforming rates for Mono County continue to drop, and this week's conforming rate is 5.75%. However, interest rates are not as significant for most second home/discretionary income purchases.
There seems to be no real sense of urgency for either buyers or sellers. Some buyers are sitting on the sidelines, while others are constantly looking for a new listing to match their criteria. Sellers seem to be enjoying their properties with little/no desire to sell despite the favorable market conditions.
Over the longer-term, the supply of homes for sale will remain below historic averages. Listing activity may be tight for an extended period: if the supply remains below the level of demand, the prices will hold. As for sale prices, we still believe — as do almost all economists — that the median home price this year will be consistent with the second half of 2022 and there will be a significant drop in the volume of sales.
It is helpful to look at the current market in two different segments: single-family homes and condos/ townhomes. Since we only have one month of activity for 2023, this data looks at the month as well as 2022 as it compares to 2021. This data is through January 31, 2023.
Single-Family Homes (SFH)
It is important to have realistic expectations when selling your property. Mammoth Lakes is a different market than other areas in California, which are mainly focused on full-time owner-occupied properties. This is primarily a second home / discretionary income market, and as the market continues to normalize after the crazy "COVID era," sellers should not expect multiple over-asking price offers. While properties are still selling, most are taking longer than they did in the last 24 months. If you are even remotely thinking about selling, contact our team to schedule a no-obligation Property Playbook & Strategy session. With the right strategy and patience, we will get your property sold.
Although inventory is on the decline, and so are the numbers of buyers, this means less competition. It does not mean there are "deals" to be had (note the average sold price is still up over 2021), but pricing is stabilizing and most often selling at or below list price. If you are not a cash buyer, contact a lender in advance to get pre-approved and make sure you understand the different options available as the interest rates continue to increase. We can connect you with lenders with a proven track record of success in our area and creative options (i.e., possible seller buy-down of your rate for the first 2-3 years). Lending rules have changed on many condo projects in Mammoth. Many buyers do not know that not all lenders can lend in specific projects in Mammoth Lakes. We can help you increase your chances of securing the property of your dreams in this challenging market, so reach out to me for a free consultation to set you on the right path to achieving your goal of owning property in Mammoth Lakes.
Whether you are a seller or a buyer, there is no doubt you will benefit from teaming with an educated and experienced Realtor® to help you navigate this hot market. We have created guides to help with both the buying and selling processes. You can access the guides on my website:
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