May 3, 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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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