Mammoth Lakes Real Estate Market Update for May 2023

Mammoth Lakes Real Estate Market Update for May 2023

The trend set in the four months of 2023 continues as we enter May.  This includes low inventory, stable prices and longer days on the market  The Mammoth Lakes real estate market can be summed up in a few key points.

• Listings are limited.

Inventory continues to be low for both condos (30) and single-family homes (10). Historically there is an increase in inventory in the spring peaking in summer.  The record-breaking snowfall appears to be delaying the influx of new listings.  Sellers of properties that were “snowed in” are looking to list as their homes are more attractive and accessible as the snow melts.

• Prices are holding at 2022 levels.

It all comes down to supply and demand. Prices will continue to hold if inventory remains low.   Higher prices are driving more first-time buyers than usual to relocate to more affordable nearby areas like Bishop.

• Interest rates.

The conforming rate for a 30-year fixed mortgage is 7.33%, while a 30-year jumbo is 6.30%.  This is an average rate with no adjustment for occupancy, credit score, down payment or type of property.  The higher rates have an impact on buying power.

• Market Temperature

New listings are receiving significant attention from potential buyers. This is especially true of properties that are either in prime locations (ie newer complexes or ski in/out) and those that are updated and “move-in” ready.  Many of these are also receiving multiple offers.  Properties that need updating are still selling but less quickly.  While the buyer pool is smaller than it was in 2022, the buyers that are in the market appear to be serious and qualified (either cash or have pre-approval from lenders). 

• 2023 Forecast

In the short-term, the supply of homes for sale will remain below the averages for the last 10 years.  If the supply remains below the level of demand, the prices will hold.  As for sale prices, we believe 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.  The median prices reflected in this report are for only 4 months with low volume and as a result do not define a trend.

What's Happening in the Mammoth Lakes Real Estate Market?

It is helpful to look at the current market in two different segments:  condos/townhomes and single-family homes. With only four months of activity for 2023, we will look at the activity so far this year as well as 2022 as it compares to 2021. This data is through April 30, 2023.

Condos

• The YTD median sales price for condos through April 2023 was $739,500.  In 2022 it was $750,000, up 23% over 2021.
• The median days on the market for properties sold through April 2023 is 110 days. In 2022 the median days on the market was 53 (up from 52 days in 2021). This period begins on the property's listing day and ends when it closes escrow.
• 52 condos sold through April 2023 (average of 13 per month). In 2022, an average of 28 condos were sold per month, compared to 38 per month in 2021.
• There are 28 active condos listed for sale on May 1, 2023. For reference, there were only 3 condos listed in January 2022, and inventory steadily increased month over month until it started to decline in August. While inventory is up from earlier this year, it is down from pre-COVID levels (May 2019 there were 155 condo listings).
• There are 22 pending sales on May 1 compared to 19 last month (includes 9 which are new construction with completion dates in 2023 and 2024).

Single-Family Homes (SFH)

• The median sales price SFH sold through April 2023 was $1,400,000. The YTD median sales price for single-family homes sold in 2022 is $1,217,500, up approximately 14% over 2021.
• The median days on market for SFH sold through April 2023 is 62 days. In 2022 the median days on the market was 68 days (down from 70 days in 2021).
• 11 SFHs were sold through April 2023 (average 2.75/month). In 2022 the average number of homes sold monthly was 7, compared to 11 in 2021.
• There are 10 active single-family homes listed for sale on May 1. While inventory is up from last month, it is still below pre-COVID levels (May 2019 there were 58 single family homes listed).
• There are 6 pending sales on May 1 – up from 2 last month.

What Does This Mean for Mammoth Lakes Area Homeowners and Sellers?

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. 

What Does This Mean for Mammoth Lakes Area Home Buyers?

As long as inventory remains low, most sellers are firm on their asking price.  This is a market for astute buyers and this is where our experience can help you with a successful offer and closing.   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.  

Conclusion

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 the current market. We have tools, resources and expertise to make buying and/or selling as hassle free as possible.

Notes:

1. All data are sourced from the Mammoth Lakes Board of Realtors. Data for Mammoth Lakes ONLY and not the surrounding areas.
2. *Median price = middle value.  This is a good indicator when there is significant data, as it minimizes the impact of unusually high or low values and provides a better perspective of the big picture.
3. **Total Available excludes properties under contract/pending that have not yet closed.