With summer right around the corner, the big question that buyers and sellers are asking me is, “What is going on in Mammoth and is it a good time to buy this year?” A quick review of 4th quarter sales in 2013 and first quarter 2014 sales in Mammoth Lakes show some significant increases in sales prices, more than we previously expected to see based on predictions from last year.
The lack of supply is creating a surge in demand and pushing prices up, along with the looming increase of interest rates that we’re expecting at the end of this year. If we continue to see such low supply in our inventory, these trends could easily continue this year. Some late season snow has kept tourists coming into the area and Mammoth Mountain has agreed to stay open for skiing until Memorial Day this year.
Mammoth Single Family Residence Update:
In Mammoth Lakes the average sales price of Single Family Residences has risen from $767,880 in Q4 2013 to $825,105 in the first quarter of 2014. That equates to a 7.45% increase in 3 months or 2.5% increase per month! That is the fastest gain in prices that we have seen in quite a few years in Mammoth Lakes.
Mammoth Condominium Update:
Averages sales prices have risen from $333,103 in Q4 to $355,168 in Q1, or an increase of 6.6% over the 3 month period. That’s 2.2% per month! Condos are flying off the market when they are priced competitively. Personally, I listed a condo and had it sold within 12 hours over list price.
There are many overpriced condos on the market today that are not moving, but sitting. These gems of properties that are priced at current market value are few and far between, so if you are a serious buyer you must be ready to make your move as soon as one of these appears. A little research ahead of time will serve you well so that you know what you are looking for and what you should be paying for it. Also, we are seeing some appraisals that are coming in under purchase price as sellers are still asking for more and attempting to generate sales over the true market value. Another trend that is continuing is that sellers are unlikely to do any repairs for buyers, so be prepared to put a little cash into repairs on your own. The other elephant in the room is the town of Mammoth Lakes’s fireplace ordinance which has buyers and sellers scrambling to bring these properties into compliance within 60 days of closing escrow. The responsibility is falling primarily on the buyers to remedy these fireplace code violations and the costs can run anywhere from $5,000 – $15,000 depending on how extensive the work is.