Our market in Mammoth may be changing.
Over the last year we have seen prices skyrocket and inventory dramatically decline in Mammoth Lakes. Seller's have been getting very high prices with buyer's buying condos and houses with no appraisal contingency and competing with several other offers. It's been taxing to say the least on buyer's and agents alike. But will this continue?
According to Fannie Mae/Freddie Mac, come April 1st, there will be an increased loan level pricing adjustment for second homes. Which is the same type of hit you would take for a low credit score, investment properties, or anything else that would affect the rate. This could affect buyer's buying power or just their comfort level with the rate increase. We could see an influx of seller's lowering their prices to compensate for these new higher rates and less buyers demand.
Also with buyer's paying the high prices we are seeing now, they see less return on their investment. The properties are for the most part at least covering the cost to own or coming close to it, where we used to see a 5-10% ROI.
It's hard to predict the future but with these new rates and prices we may start to see properties turning around. If you have been considering selling, I would say now is the time to do it.
I decided to write a post about what can be rented out nightly in Mammoth Lakes because it's one of my number one questions I get asked all the time. A lot of buyer's want to come up and buy that nostalgic cabin in the woods but unfortunately in Mammoth, almost all of our houses are not allowed to be rented out nightly. If you want to buy a property to rent out on a nightly basis in Mammoth, you are more than likely going to have to buy a condo. The good news is our town does not put a limit on how many condos can be rented out nightly and they never will. 75% of the town's income for the year comes from nightly rentals. They charge a 14% transient occupancy tax on all bookings and this accounts for most of their income for the year and they do not want to give that up. They did try and allow some short term rentals on some residential neighborhoods in Mammoth several years ago and it went to vote but it was voted no by the majority of the town. Homeowner's wanted to know who their neighbors were and did not want the hassle of having nightly renters partying it up next door all the time. We do have a very small sliver of homes around the Sierra Star Golf Course called Gray Bear that can be rented nightly as well as a few up by Little Eagle Ski area. These tend to sell for upwards of $2 million when they do come on the market. So if you are looking for a property you can do short term rentals on, we suggest you begin looking for your dream condo and we are here to help you find it!
Have you been considering purchasing a condo in Mammoth Lakes that you can rent out nightly when you are not using it? Based on the last three years of owning our nightly rental company, owners are seeing a 5-10% return on their investment per year. What this equates to is a $500,000 condo seeing a $50,000 net rental income per year. We started Ready 4 Rentals because we noticed a lot of local rental companies were charging 30-50% rental management fees and not renting out the condos much resulting in low year end totals. With our mangement company you only pay a 15% management fee and will see your property rented out consistently all year long!
Based on managing 70 unit in Mammoth Lakes, Cynthia and I know what listings on the market are going to generate the most income per year. When we view properties, we can point out all the positives and negatives of each place so that when you make an informed decision on a property. You know full well that what it will typically make in rental income per year and ways you can improve that if needed. We are here to carry you through the entire buying process as well as your rental investment after the sale! No other agents in Mammoth are offering a service like this. Contact us today to see how we can help you make the most money on your Mammoth investment today!
There is no doubt that mortgage credit availability is expanding, meaning it is easier to finance a home today than it was last year. However, the mortgage market is still much tighter than it was prior to the housing boom and bust experienced between 2003 - 2006.
The Housing Financing Policy Center at the Urban Institute just released data revealing two reasons for the current exceptionally high credit standards:
- Additional restrictions lenders put on borrowing because of concerns that they will be forced to repurchase failed loans from the government-sponsored enterprises or Federal Housing Administration (FHA).
- The concern about potential litigation for imperfect loans.
What has been the result of these concerns?
6.3 Million Less Mortgages
The Policy Center report went on to say:
“It was so hard to get a mortgage in 2015 that lenders failed to make about 1.1 million mortgages that they would have made if reasonable lending standards had been in place. From 2009 to 2014, lenders failed to make about 5.2 million mortgages thanks to overly tight credit. In total, lenders would have issued 6.3 million additional mortgages between 2009 and 2015 if lending standards had been more reasonable.”
In an interview with DSNews, Laurie Goodman and Alanna McCargo of the Policy Center further explained:
“Our Housing Credit Availability Index (HCAI)* measures the probability that mortgage...
A recent study of more than 7 million home sales over the past four years revealed that the season in which a home is listed may be able to shed some light on the likelihood that the home will sell for more than asking price, as well as how quickly the sale will close.
It’s no surprise that listing a home for sale during the spring saw the largest return, as the spring is traditionally the busiest month for real estate. What is surprising, though, is that listing during the winter came in second!
“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”
The study goes on to say that:
“Buyers [in the winter] often need to move, so they’re much less likely to make a lowball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”
If you are debating listing your home for sale within the next 6 months, keep in mind that the spring is when most other homeowners will decide to list their homes as well. Listing your home this winter will ensure that you have the best exposure to the serious buyers who are out looking now!
The study used the astronomical seasons to determine which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 – June 20; Summer: June 21 –...
If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”
This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons people buy a home have nothing to do with money. They are:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.
What does that mean to...
There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).
If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.
Freddie Mac defines closing costs as:
“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”
We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.
Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:
- Government recording costs
- Appraisal fees
- Credit report fees
- Lender origination fees
- Title services (insurance, search fees)
- Tax service fees
- Survey fees
- Attorney fees
- Underwriting fees
Is there any way to avoid paying...
NEW LISTING COMING SOON!
WALK TO THE VILLAGE OF MAMMOTH-LOCATED ONLY 3 HOUSES UP FROM THE VILLAGE! HOP ON THE GONDOLA, HIT THE HAPPY HOURS OR GO SHOPPING ALL WITHIN MINUTES OF AN EASY WALK!
2 BEDS+LOFT/ 2 BATH/ FIXER/ WRAP AROUND DRIVEWAY
CONTACT ME TODAY FOR MORE INFORMATION AND PHOTOS! WILL BE HITTING THE OPEN MARKET WITHIN DAYS!
Remodled townhouse located on the shuttle route and walkable to town to enjoy happy hours, restaurants and shopping. The townhome sits in the back of the complex with a lot of privacy and more quiet. The kitchen offers new cabinets, granite counters and newer appliances. The dining area can seat 8. Large open living room with a warm woodstove to keep you warm on cold winter nights. The complex has a pool and spa. A great place to come up and enjoy Mammoth!
For Sale! Coming Soon!!
49 Holiday Way, Mammoth Lakes, CA
2 Beds+Loft/2 Baths/2 Car Garage
This is the perfect Mammoth Cabin to come up and enjoy Mammoth Lakes in! It’s plenty big for a large group with a huge oversized garage to hold all of your outdoor toys. Fully remodeled kitchen, baths, floors, etc… The owners resurfaced the deck over the summer and added new garage doors. Once you see this you will fall in love with the cabin charm as well as the large south facing windows and large deck for entertaining. Schedule a showing today!
Call Jamie Nash-Kelly today
Despite existing-home sales dropping last November, the National Real Estate Market is primed for expansion in 2016. Here's why. Better weather in many parts of the country resulted in an increase in single-family and multifamily home construction. Here in Mammoth Lakes we have seen more home construction in the last year including the new Gray Bear home development that allows for nightly rentals due to it's resort zoning. If interested, contact me today to get more info on upcoming homes available in the subdivision. Also, the population of millennial homebuyers is expected to grow in 2016. This means increased demand to help the housing market see positive gains. With unemployment steadily decreasing, orders for new durable goods increasing 3 percent, inflation staying level, and income beginning to grow, the Fed decided to raise interest rates. The rate increase signals that our economy is getting stronger. So, don't let the drop in existing-home sales in November fool you, with a stronger economy home sellers can expect eager home buyers in 2016.
Millennial Home Buyers
The low demand in November meant that first-time home buyers had only a 30 percent share in demand, which is slightly down from 31 percent in October and last year. However, in 2016 home sellers saw an increase of first-time home buyers enter the housing market because of the growing segment of millennials between 25 and 34 years of age. The Census Bureau projects that the population of millennials aged 25 to 34 will increase by an average of nearly 500,000 per year in the second part of the decade. Also, NAR's inaugural quarterly Housing Opportunities and Market Experience survey reported that a large majority...
When it comes to energy efficiency, look for smart features and expertise to help you save energy and money and add value to your home.
1. Begin with a Right-Sized Home.
If the home you buy is simply too large for you or your family’s needs or plans, you stand a good chance of wasting energy through excessive heating and cooling costs. If it’s too small, you’ll feel cramped and uncomfortable. It’s a big investment, so seek balance and buy it “right” from the outset.
2. Purchase Energy Star Appliances Such as Your TV, Dishwasher, Washer and Dryer, and Microwave.
And especially the refrigerator, as it alone contributes about 10 percent of the energy use in a home. Also, unplug electronics not in use or turn off power strips to avoid phantom charges.
3. Install Efficient Lighting Such as Compact Flourescent (CLF) or LED Bulbs in Every Fixture.
Lighting accounts for about 6 percent of an energy bill each year.
4. Get an Energy Audit and Have Tests Performed to Identify Ways of Improving Your Efficiency.
You can always upgrade your heating, ventilation, and air conditioning (HVAC) system as well as your thermal envelope, which includes insulation, windows, and doors and the seals or weather stripping around them. Visit energy.gov/energytips for more tips.