Mammoth Real Estate Sales Report – June 23, 2024

Mammoth Summer, Doesn’t Get Any Better!

Market Summary –   June 9 to June 23 

The Mammoth Lakes MLS is reporting 24 real estate closings for the period ranging from a low of $90,000 to a high of $3,426,000. Of the 24 closings, 23 were financeable properties and 15 were closed with financing. There were ten condo closing between $500,000 and $850,000. The Kitzbuhel Place (Knolls) home that had over ten offers closed for $241,000 over the original asking price. The new owner is likely to put several hundred thousand into the needed remodel. The high sale was a modern home in the Snowcreek Ranch and the rumor is that the winter of 2023 motivated the sale.        
 
The 10-year Treasury yield ended down at the end of the period to 4.25%. More “quiet” from the bond market and mortgage industry. Conventional mortgage rates are being quoted at 7%. Several lenders are promoting attractive jumbo rates, maybe even equal to the 30-year conventional rate (borrowers need to shop around). One transaction I am currently involved with, the buyer is being quoted a 10-year interest-only mortgage in the mid-5% range. This type of offering may become more interesting to buyers. Based on the percentage of financed transactions during the period, an increasing number of buyers are accepting the reality of higher rates.
 

Condominium Inventory

At the period’s end the condominium inventory is up five (5) to 70. There are sure to be more before the 4th of July holiday. The historic market trend in Mammoth has always been a peak of inventory around Labor Day Weekend with the best condo shopping of the year at mid-summer. The year 2024 looks to be conforming to the trends of the past. There were 19 new condo listings in the period and four (4) have already gone to contract. Village condos continue to be in demand including 1 bedroom units. There are new, curious concentrations of listings at MeadowRidge and Mountain Shadows. What condos sold during the period? Two Snowcreek 5 townhomes including a fabulously remodeled 3/3 priced at $1,450,000, a Creekhouse resale, a Bigwood 1+loft, a Woodlands townhome and small units at Seasons Four and Grand Sierra Lodge.
 

Single-Family Home Inventory

The inventory of single-family homes is up three (3) to 20. There are seven (7) homes listed under $1.5M and all of them are seriously compromised (I’ve been out showing them). Buyers in this price range are hyper-frustrated. There are better opportunities in the higher price ranges. What sold? The Majestic Pines house that had an under-roof ADU opportunity. A newly listed $1M lot in The Bluffs went to contract. 
 

Pending Transactions

The total number of properties in “pending” (under contract) in Mammoth Lakes is down 12 to 34 at period’s end. The total number of pendings in the aggregate Mammoth MLS (which includes outlying areas) is down 14 to 59. Unlike earlier in the year when sales were very consistent, the action lately seems to be coming in waves. We’ll see if the start of summer brings the next wave. During the period there were buyers making “low ball” offers on properties to see where the sellers are. They didn’t work. There are always motivated sellers in the market but so far there is no sign of distress in the Mammoth market. Jonathan Miller is one of the leading real estate gurus today, he was on Bloomberg the other day explaining why home prices will stay elevated in many markets. Every market is different, and perhaps even more so in the future.
 

Market Updates and News

After a week of cool weather during the period, Mammoth summer has arrived. The Mammoth Motocross event started this weekend and will feature the pro riders next week. So far the crowd is solid. Unlike last summer, everything seems in sync in 2024. There are even groups of backpackers milling around town. The volume of visitors has jumped in the past few days but a variety of reservation and booking agents have already warned that the forward bookings are down for the summer, and perhaps substantially. Inflation and other economics will impact summer tourism. 

After the hordes of 2000-03, that will be welcome to most. And there is no doubt some potential visitors are watching the booking volume and the impact of dynamic pricing on rates, and hopefully seeing more affordability. And so far it appears that many visitors are in camping and RV mode.The 4th of July falls on a Thursday this year so the celebration period will be broken into fragments; some will come for the entire week, and others for a 4-day weekend. All told it looks like it should be a great summer to visit Mammoth. 

Many local residents are now gasping at the growing size of the Limelight hotel structure. The fifth floor is up and the south end where the condo hotel units are actually has a sixth floor. The plans show for plenty of “softening” between the structure and the street, walkways, plaza areas, landscape (trees), etc., but it is a stark sight at the moment. The tower cranes don’t help. The blighted Berner St. property is currently under demolition. This is the site for the approved Marriott Residence Inn. We’ll see if construction starts, but it is sure nice to see all of that disappear—it has been an old and unsightly left-over industrial usage site since the beginning of the Village development. Once the new hotel is built, I propose to rename Berner St. to remove all remaining stigma. The Village deserves better. And so far, no new activity at the old Nevados corner. 

There are workmen performing a variety of tasks around The Sawyer at The Parcel, but the brand new 71 units of workforce housing are still sitting vacant (although as of this morning there might actually be a couple of units occupied). I know several tenants that were recently displaced and they were able to find housing, so with slower economic activity I have to wonder what the demand is really like. The recent panic and push over workforce housing may have been influenced by an unusually high demand created after the Covid lockdowns. Some of it may have subsided. With ~100 units of workforce housing coming on line in the coming months, it is going to be interesting to see if it all fills up. The even larger second phase of The Parcel has been cleared of trees and there is ongoing infrastructure work.

With slower, and potentially significantly slower tourism numbers this summer, the November election initiative to add another 2% to the TOT (bed tax) should become some entertaining debate (do we keep charging them more until they don’t come at all?). And if it doesn’t pass, Council members have promised even more oppressive measures (authoritarianism seems to be in vogue). Vacancies at available workforce housing units at The Parcel could make it even more curious. 

Meanwhile, the 2% TOT increase initiative (to benefit workforce housing) will be competing with a Fire District bond initiative that didn’t pass a few months ago. The Fire District recently mailed out a glossy brochure and accordingly the most common question from the public is; Tourists use a lot of our fire protection services, shouldn’t they pay for them? The answer is that there is no connection between TOT generation and funding the District. The District “receives no money from the Town.” That’s it, no further discussion. Are they implying that this is why the public should vote for their bond? Or not vote for the 2% increase. I’m confused. But maybe this is just the start of a long campaign by the District. I wonder how many of the postal patrons even read the brochure? And the Old Mammoth cell tower debacle has surely tainted support for the District.

Slower summer tourism may also rekindle the debate about the value of the millions and millions the Town spends on marketing. Someday they might figure out that today’s Mammoth tourism is driven by the IKON Pass and macro-economics, and not “sophisticated” marketing. They have been past the point of diminishing returns for a long time.

At a recent Council meeting one Council member asked the public works honchos about the progress of bringing enough electrical power into the maintenance yard to be able to charge electric driven snowplows and street blowers. The response was that it is “far off” at this point. One local resident who pays attention to these things told me there is a relatively easy solution; bring in some large diesel generators to provide the electric power. I wonder if the Council members would think that is a good idea?

Noteworthy Sales 

An 8-plex apartment building closed for $1,400,000, and it was financed. Lending guidelines make it more difficult to qualify properties of more than four units. And the property had to be insurable too. All positive for the multi-family market in Mammoth.  

Two of the Studio +  loft / 2 bath condos at Mountain Shadows closed, one quite original at $423,000 and one remodeled for $500,000. These are some of the best smaller units in town—upstairs and 2 full baths.

Two more 2 bedroom / 2 bath units at Juniper Springs Lodge closed in the mid-$800,000 range. Values are holding there.

Favorite New Listings For The Period

106 Connell Rd.

This incredible and one-of-a-kind property was on the market briefly late last summer but is now back on the market. Mammoth Creek flows out of the Valentine Reserve and through the rear of this property. Unreal setting and privacy rarely afforded in Mammoth. Three bedrooms and 2.5 baths, custom mountain home. This land has been in the family for 98 years.

Now listed at $2,895,000 

116 Pinehurst Dr.

This is new to the market this last week. Classic Mammoth floor plan; 4 bedrooms / 3 baths with living room, kitchen and primary bedroom all on the top floor. This is an easy walk to Eagle Base but out of the traffic area. Tons of stone work throughout. No fireplace or forced air heating—perfect for anyone with allergies or certain medical conditions.

Listed at $1,575,000

Bigwood #73

Just listed. Arguably the best location in the project overlooking the 4th and 5th holes of the Sierra Star golf course. Garage is underneath the unit. This original-condition unit has been in the family for 35 years and is remodel ready. Remodels of these units have included enclosed decks and entries, extra windows, open kitchens, etc..Fantastic location and opportunity at a low price.

Listed at $599,000

Vacasa Link

Sierra Park Villas #21

This is the original 1+loft floor plan but this is really a 2 bedroom + loft / 2 bath (including a shower in the downstairs bath). This has recently been a rental (STR) so this is an easy unit to personalize and get back to producing usage and revenue. Remodeled kitchen and baths. Washer/dryer in unit. Seller moving to the east coast. Will be on the market in the next few days.

Listed at $659,000

 

Thanks for reading!

 
** Closed sale data is compiled from in-house files and public records.

1 thought on “Mammoth Real Estate Sales Report – June 23, 2024”

  1. Wow, Kitzbuhel Place sold for $241,000 over asking. My offer didn’t stand a chance, and I put every last penny into it. Hope someone local bought it and it doesn’t become a vacation home that sits empty 80% of the year.

    Reply

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