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.