Before we dive deep into Mammoth Lakes real estate, here is the latest local news! There is a lot of exciting news in Mammoth Lakes and the surrounding communities. Effective Wednesday, May 12 Mono County was reassigned to the least restrictive Tier 4, Minimal (Yellow). This least restrictive tier is planned to expire on June 15 as the State moves beyond this blueprint plan. Thank you to everyone who is following social distancing guidelines. Let’s keep up the good work! Read the full press release here.
On Monday, April 19th the Town broke ground in Mammoth Creek Park to start building the new Community Recreation Center. The recreation center will include an Olympic sized ice rink in the winter. In the summer, the ice rink will convert into three gymnasium style courts for soccer, basketball, volleyball and more. You can read more about the new recreation center here.
Fishing opener was a big success. People have been catching big ones and enjoying the warm spring sun. You will now see most lakes filled with boats and people fishing on the shores. Mammoth Mountain is still operating and plans to do so until Memorial Day Weekend. There are limited lifts and they run from 7:30am to 2:00pm. The slush is fun to ski on, so get in your last laps of the season soon! It’s a great time to visit Mammoth and the surrounding areas!
Mammoth Lakes Real Estate Recap
The Mammoth Lakes real estate market in April 2020 was pretty much the opposite of April 2021. Last year, in April 2020 the real estate market was still very much on pause. There were not a lot of people looking to buy, and many sellers had pulled their listings off the market. This year, the real estate market in Mammoth Lakes and the surrounding areas is staying highly competitive. There are still many buyers looking for properties and not enough listings. The good news, however, is that we are slowly starting to see the inventory creep up. Typically, more listings hit the market in spring and summer. Unfortunately, we are still at about a third of what we usually saw pre-covid.
According to realtor.com, we are not in a bubble. Yes, home prices are increasing dramatically, but the market is structurally sound. We will likely not see a housing crash since lending has been reconstructed since the Great Recession. The forces that are driving prices up are simply high demand and low supply. The most likely scenario is that prices flatten and bidding wars slow down. Check out more predictions here.
Mammoth Lakes Real Estate Home Trends and Stats
The current supply of homes still cannot keep up with the buyer demand. In April, 12 homes sold and 14 were listed. Two of the homes listed were mobile homes. As of May 12th, 2021 there are only 19 homes on the market in Mammoth Lakes and more than half are listed over $1,000,000.
The median sale price of a home in Mammoth Lakes decreased from the record breaking month of March (median sale price in March 2021 was $1,977,500). This past April the median sale price was $1,157,500. This is not likely a sign of decreasing prices, but rather different priced homes selling in April. March 2021 consisted of eight Mammoth homes selling and five of them sold for over $1,900,000, with the highest sold at $3,200,000. This past April more homes sold in the lower one millions, with the outliers being a house on Rusty Lane selling at $765,000 and a Craftsman style home on Meadow Court selling at $3,850,000.
As you can see from the graphs above, April 2021’s median home sale price is still higher than any point in the past two years. And the Year-to-Date median sale price still towers above the past seven years. Contrary to April’s dip in median sale price, the median price is likely to continue to climb this year. Low interest rates combined with extremely low inventory and high demand remain in effect. These factors will continue to keep prices high. We are seeing a few more listings hit the market with the warmer seasons. Even with more listings, the market will likely stay highly competitive, keeping the median home price in the one million range.
Mammoth Lakes Real Estate Condo Trends and Stats
As expected, Mammoth condos are still on a bull run. 2021 has beat the last two years in terms of condos sold and listed. We are finally starting to see larger numbers of condos listed, but not enough to decrease the competition.
In April, 54 condos were listed which is higher than the usual amount of listings at this time. Spring is usually when the inventory starts to pick up. We believe more and more sellers are finally starting to take advantage of the high prices. Spring is also a great time to list your property since showings are much easier without snow.
As of May 17th, there are 40 active Mammoth condo listings on the market. This is about double what we were seeing earlier in the year; however, this is only about a third of the number of active listings we had pre-pandemic.
The median sale price of Mammoth condos increased to $661,250. Sellers are listing their condos much higher than recent comparables. Some Mammoth condos are having a hard time appraising at those prices. As bidding wars become common in this market, the appraisal contingency is sometimes removed. This means the buyer cannot back out of the deal due to a low appraisal. There are different ways this can be negotiated. Currently, most buyers will cover the difference if they hadn’t already put a large amount down in the purchase contract.
The median sale price of Mammoth condos is on a four month streak. Mammoth condos are typically always desired due to the rental income potential. If you’re curious about rental numbers, check out AirDNA.com. Also, contact us to refer you to some local rental companies who can give you a rental estimate of a particular unit. The Year-to-Date median price sale of a Mammoth condo is $565,500, which is still much higher than the past seven years.
Is now a good time to buy Mammoth Lakes real estate?
In 2019, the real estate market was hot. If the market was hot then, it’s on fire now. Two years ago prices were high and everyone thought we would see a correction since we were historically overdue for another recession (last one in 2008). Little did we know we were about to see one of the greatest corrections of all time but housing prices went in the other direction. The price of Mammoth real estate has been going higher than anyone ever expected. So, we are seeing some similarities comparing this year to 2019. The trends that propelled 2019’s high prices have been intensified throughout 2020 and this year. Now there is even more demand as people crave all the benefits of homeownership and rural areas.
Larger homes and the freedom of homeownership is more popular than ever in the corona economy. Interest rates are still hovering around 3% allowing buyers to acquire larger mortgages. Lending is stricter than ever and subprime mortgages are a thing of the past. The real estate industry is in good shape besides the fact that we are in a housing shortage.
Prices are predicted to increase for the foreseeable future albeit at a slower rate. With that thought, a home today may be ‘cheaper’ than a home a year from now. It can be extremely discouraging to participate in this market with bidding wars and contingencies being removed like it’s ‘no big deal.’ Buyers need to be ready to give it their all – highest and best offer. It might be the more stressless path if you can wait and don’t mind the possible increase in prices. However, if you wish to avoid a possible higher mortgage, and higher mortgage interest rates, then right now may be an ok time to buy.
Is now a good time to Sell Mammoth lakes real estate?
Some of the sales this past year have blown our minds. You never know how high the market can go. The prices in Mammoth are now close to the same height as they were before the Great Recession. It’s definitely a seller’s market.
If you’re not using a property here in the Eastern Sierra whether it’s vacant land, condo, commercial, home, etc. contact us for a free home valuation and custom marketing plan of your property.
Disclaimer: Based on information from the Mammoth Lakes Board of REALTORS and other various sources. All data including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.