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 down (-3.5%) in comparison to 2019’s median price for the entire year. The median price recovered 2% in July alone. Almost all houses in Mammoth are not allowed to be rented out nightly so this is unprecedented to see this many home sales in our area as most buyers want to make rental income when they are not using the property.
As of August 1, 2020, the median price for a condominium in Mammoth Lakes was $467,500, which is 3.7% higher than 2019’s median price, and a 3.7% increase over last month’s figures. This median price was determined by considering 134 sales year-to-date.
The most dramatic impacts of Covid 19 are in the activity of sales in Mammoth Lakes. Initial impacts were showing a sharp drop in the number of sales, while late June and July demonstrated not just a sharp recovery in sales volume. Sales activity for July 2020 is 48% greater than the average sales volume during the months of July over the past 10 years.
Sales volume for condominiums was not as dramatic as single-family home sales, but the sales volume for July is still 24% greater than the prior 10-year average.