The Mammoth Real Estate Blog

Nightly Rental Opportunities in Mammoth Lakes: What You Need to Know

In the ever-popular Mammoth Lakes, where the allure of both winter and summer activities beckons, the recent rental moratorium by Mammoth has introduced a pause on nightly rentals. However, amidst the restrictions, there are still exceptions and strategic ways to continue capitalizing on the thriving rental market.

Exceptional Opportunities: While Mammoth's rental moratorium has impacted many properties, there are specific exceptions that savvy investors should take note of. Condos in the picturesque Snowcreek development, properties nestled in the Village, and those lining the golf course can still be rented nightly. The silver lining? These properties are eligible for obtaining a new nightly permit, allowing property owners the flexibility to choose any rental company or even manage the property themselves.

Maintaining Momentum: For those with condos that already possess a rental license with a specific rental company, there's good news. You can continue renting, as long as you stay loyal to that particular rental company. This exception provides a seamless transition for property owners, ensuring the continuity of rental income without unnecessary disruptions.

Overcoming New Restrictions: While the rental moratorium may initially seem restrictive, it's crucial to recognize that there are ways to navigate around these challenges. If you're considering purchasing a condo for nightly rental purposes in Mammoth Lakes, these exceptions offer a glimmer of hope. It's an opportune time to explore the real estate market and find a property that aligns with your investment goals.

Thriving Rental Market: Despite the current lack of snowfall this season, the Mammoth Lakes rental market remains robust. The area's popularity extends beyond winter, with summers proving to be even busier. This versatility positions Mammoth Lakes as an ideal year-round investment destination, offering both consistent rental income potential and the opportunity for personal...

Navigating the Peaks and Valleys: A Deep Dive into Mammoth Lakes, CA Real Estate Market

Nestled within the Eastern Sierra region of California, Mammoth Lakes is a picturesque town that has long been a haven for outdoor enthusiasts and nature lovers. Renowned for its stunning mountain landscapes, world-class skiing, and vibrant community, Mammoth Lakes is not only a destination for vacationers but also a captivating real estate market for those seeking to make this charming town their permanent home. In this blog post, we'll take a closer look at the current state of the real estate market in Mammoth Lakes, exploring the trends, challenges, and opportunities that define the area.

The Appeal of Mammoth Lakes:

Mammoth Lakes has evolved from a seasonal resort town into a year-round destination, attracting residents who appreciate its unique blend of natural beauty and recreational opportunities. The town's real estate market has seen increased demand, fueled by its thriving tourism industry and a growing desire for mountain living.

  1. Seasonal Influence: Mammoth Lakes experiences distinct seasons, with winter drawing skiers and snowboarders, and summer bringing hikers, mountain bikers, and fishing enthusiasts. This seasonal ebb and flow contribute to the real estate market's dynamics, with fluctuations in demand and property values.

  2. Outdoor Lifestyle: The town's appeal lies in its proximity to Mammoth Mountain, a world-class ski resort, as well as the surrounding wilderness. Homebuyers are often drawn to Mammoth Lakes for the promise of an active outdoor lifestyle, offering activities like hiking, mountain biking, and water sports.

Current Market Trends:

As of [current date], Mammoth Lakes' real estate market is characterized by several noteworthy trends:

  1. Rising Property Values: Over the past few years, Mammoth Lakes has experienced a steady increase in property values. This rise can be attributed to the area's growing popularity,...

Navigating the Maze: Virtual Luncheon Explores Mammoth Lakes' Short-Term Rental Moratorium

Introduction: In a virtual gathering that brought together more than 70 concerned participants, Mammoth Lakes residents delved into the implications of the recently passed short-term rental (STR) moratorium. Facilitated by Realtor Mickey Brown, the discussion provided a snapshot of the historical context of STRs in town, shedding light on the intricacies that shape this contentious issue.

Historical Overview: Brown outlined the zoning regulations in Mammoth Lakes, emphasizing that significant changes had not occurred since the town's 2014 update to the 2007 general plan. These regulations, influenced by extensive community input, have given rise to current zoning codes that dictate the legal operation of STRs in the community.

The Moratorium: On October 18, Mammoth's Town Council adopted an urgency ordinance, imposing a 45-day moratorium on the issuance of new short-term rental registration certificates. Notably, the moratorium exempts housing units in specific areas, raising questions among community members about the perceived preferential treatment of "Resort Zoning."

Resort Zoning Complexities: Attorney Jeremy Ibrahim clarified that Resort Zoning, covering properties exceeding 20 acres, might be exempt due to pre-existing agreements that supersede general zoning rules. The discussion unveiled the challenges of rezoning properties like Canyon Lodge, originally designed as short-term stays for tourists.

Community Input and Proposed Solutions: As the conversation unfolded, community members voiced their concerns and proposed solutions. Suggestions ranged from limiting the number of permits per owner to requiring residency for operation. Council Member Bill Sauser highlighted the formation of a committee to address these concerns, underscoring the town's commitment to a comprehensive approach.

Financial Considerations: Transient rental owner Greg Newbry proposed taxing rental properties an additional 2%, potentially generating an extra $4 million...

Our Mammoth market may be changing

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. 

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What is allowed to be rented nightly in Mammoth?

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! 

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What's the Mammoth Lakes market like after Coronavirus?

Real Estate Prices: August 7, 2020

REAL ESTATE MARKET IN MAMMOTH LAKES AS OF AUGUST 7, 2020

 

All we can say is wow!! Our market is so hot right now it's almost too much to handle! The Mammoth Lakes marketis proving to be exceptionally strong since opening in June. Why you ask?  Much of it is attributed to the fact that many have become frustrated, and even fearful, of the urban lifestyle during this pandemic. Many are simply looking for a slower and safer way of live. Another factor is people are now able to work from anywhere so coming to the Sierra's for work sounds ideal right? 

If you read this article about the “Rural Boom”, a phenomenon being written about in many credible publications, you will see that Mammoth is not the only mountain town experiencing this. There is similar activity in lots of competing mountain resorts across the country.  Activity in competing mountain resorts.

Other reasons the real estate market is hot may be attributed to the volatility and perceived instability in the stock market.  Some investors believe the stock market, and other markets, are overvalued or just unstable.  Simply put, people are looking for a secure place to put the investment dollars.  With interest rates at, or near, all time lows real estate may be the ideal place to put dollars for the long-term investors coupled with the fact that our Airbnb/VRBO market is one of the best places to invest for excellent year round rental income. Many of our condos are seeing a 10-15% CAP rate.  

SINGLE FAMILY HOMES

The single-family home market in Mammoth Lakes has produced 48 sales so far this year. Median home prices are $765,000, which is...

Finding a rental property in Mammoth Lakes

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! 

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Is Getting a Home Mortgage Still Too Difficult?

Getting a Home Mortgage

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:

  1. 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).
  2. 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 borrowers will become...

Selling in the Winter Attracts Serious Buyers

Selling in the Winter Attracts Serious Buyers

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.”

Bottom Line

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 – Sept 21; Autumn:...

3 Questions to Ask Before Buying Your Dream Home

3 Questions to Ask Before Buying Your Dream Home

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 you?

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Have You Saved Enough for Closing Costs

Have You Saved Enough for Closing Costs?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 closing costs?...

Coming soon! New house for sale next to the Village of Mammoth!

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!

ASKING $589,000

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!

760-914-0625/JNASHREALTOR@GMAIL.COM

1271 FOREST TRAIL, MAMMOTH LAKES

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Coming Soon! Timberline #18 condo in Mammoth Lakes!

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!

Asking $295,000

Timberline #18 kitchenTimberline #18 living room

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Coming soon!! 35 Vacation Place, Mammoth Lakes

Coming soon!!

35 Vacation Place, Mammoth Lakes, CA

Newly remodeled home located walking distance to the Village of Mammoth. Updated kitchen, wood floors, carpet, etc.... 3 Bedrooms+large bonus room, 2 Baths, 1 Car Garage and an added on storage area with jacuzzi. The home sits south facing on a quiet cul de sac-yet easy access to everything the Village has to offer. Jump on this one before it's gone! Asking $875,00035 Vacation Place Kitchen

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Coming Soon! 49 Holiday Way 2 Bed+Loft/2 Bath in Mammoth Lakes

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! 

Asking $589,000

Call Jamie Nash-Kelly today

760-914-0625

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National Real Estate Market Primed for Expansion in 2016

Strengthening Economy

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 of millennials...

Tips to Save Energy and Add Value

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.

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