Tourism Moderates, And It Has Been A Spectacular Time To Be In Mammoth!
Market Summary – July 3 to July 17
The Mammoth Lakes MLS is reporting 11 real estate closings for the period (same as last period) ranging from a low of $565,000 to a high of $1,695,000. Of the 11 closings, all were financeable properties and only four (4) were closed with financing (still plenty of cash buyers around). The closings included two Snowcreek Phase V (Fairway Homes) units and two Obsidian Villas units.
Single-Family Home Inventory
Market Updates and News
Favorite New Listing for the Period
The old saying “Just bring your toothbrush” with this property. Snowcreek Phase 2 is in great condition. Major HOA exterior renovations and re-renovations has the project quite modernized. Here is a 1 bedroom + loft / 2 bath corner unit. Lots of parking out front. Nice greenbelt location. Major upgrades throughout make this a turn-key sale and ready to use and/or rent. Currently a strong Airbnb property. Nice Sherwin Range views and great natural light with the extra windows. Modern pellet furnace in the fireplace for efficient heating The loft has an oversized bathroom and extra lockable storage for the owner. Primary bedroom has two windows and two closets. Modern full sized stack washer/dryer. Check out the video tour.
Other Real Estate News
A reader asked about the comment in my last Q&A about “we are back to ‘blocking and tackling’ in the real estate business”. This was a popular saying from one of my former associates who was classically trained in sales at IBM and Xerox and started selling real estate in Mammoth in 1972. What does this really mean the reader asked? It doesn’t mean we are about to start blocking and tackling buyers and sellers (although I’ve actually seen it happen a few times). But it does mean the market is normalizing. The past 24 months, and especially the past 18 months have not been normal. One prominent supervising broker said to me last week “my newer agents know nothing but order taking.” It is so true. It is no way to “learn” the business. It is great way to become spoiled.
The football analogy of blocking and tackling refers to the real work that is takes to be successful in the real estate business. It is about product knowledge, marketing, negotiating, selling, etc., and outright paying attention. The past two years have distorted many things, including agent’s perspective on what it takes to be successful (this is one of the reasons managing sales agents can be lobotomizing).
What has made matters worse this time around is the role that tech has played in the business and the market. This includes not only social media but companies like Zillow and Homelight. Premier agents at Zillow and Homelight pay mightily for the exposure and leads these companies provide. It can cost $10s of thousands per month or up to 35% of the gross commission on each and every transaction.
As the current transaction flow slows down this is going to effect the agent’s bottom line in a profound way. Many of these premier agents are going to question their continued participation. Most are going to have to get back to blocking and tackling to survive. And savvy buyers and sellers are catching on to the “value proposition” of this tech strategy.
With the market change these tech unicorn companies are now going to be scrambling for new revenue sources and structures. And maybe some profitability to justify their existence. Layoffs are already coming fast and furious. Their stock charts look like good ski runs.
In an Inman article this last week, real estate tech guru Mike DelPrete (scholar-in-residence at University of Colorado Boulder) said agents are going to be in a “dogfight” for business with the market cooling. Not only with themselves but also against tech. Of course he is “selling his book”, but how long can these companies keep losing money? It is like the year 2000 for real estate tech companies. They clearly don’t know anything about blocking and tackling.
DePrete states that agents are in a dogfight with tech because “There’s billions and billions of dollars from these real estate tech companies that have been invested into new models, new services, new ways to help these buyers and sellers, and new advertising—hundreds of millions of dollars on TV ads, radio ads, all of that trying to attract a dwindling number of potential customers first and be able to build the best relationship with them.”
He goes on that some of these tech companies will become more efficient and it will “enable them to do less with more and continue to expand their product or service in a new markets in a faster way.” He goes on, “For other companies, it’s going to limit their ability to grow…If you have less resources, less people, less ability to grow your business, it’s going to slow you down, which can come and get you into this dangerous zone where the market is slowing, you need to cut expenses, but by doing so, you’re slowing your ability to grow and compete in the market. It’s a bit of a catch-22. That could be really dangerous for companies, especially in an environment like this.”
After reading this lengthy interview I can see why he has taken a university position. I can say he talks out of both sides of his mouth better than any real estate agent I have ever met, and I’ve known plenty. I doubt he ever played football or any other team sports.
Meanwhile, those of us who have survived the past decades of the real estate business in Mammoth are already back to basics (and enjoying a little free time). Reality is we never really changed. We’ve been blocking and tackling all along. And this is a good thing for future buyers and sellers of Mammoth real estate.
And, where did all those out-of-town Compass agents go??
Thanks for reading! Please stay healthy.