It’s been another busy year here in Mammoth Lakes. With 2011 coming to an end, we thought it
would be a good time to give you an update.
Real
Estate: Mammoth Lakes
real estate continues to be quite active, primarily since about the spring of
2009 when the foreclosures started coming on the market. The low end of the market (condos under
$200,000 and houses under $500,000) has definitely been the hot spot. Those who didn’t leverage away their life
savings are buying, ready to buy and ready to buy more. It’s definitely a great time to buy; prices
are low, interest rates are low and the stock market is uncertain.
At times it seems as though the market is bottoming out,
but then another foreclosure hits the market to drop prices again…the good news
is that the market is definitely not plummeting anymore and, in certain
segments of the market, we actually have seen bottoming out and even a bit of
upwards correction. For example, the
average price for a 2 bedroom condo in The Village and Juniper Springs Resort
has increased from $365,000 to $410,000.
Here are some quick sales statistics from the past two
years:
Homes in 2010: 69 sales (16% short sales, 25% REOs), 42%
paid with all cash. Average price: $893,200 (7 homes sold over $1.8M).
Homes in 2011: 70 sales (10% short sales, 19% REOs) 34%
paid with all cash. Average price: $681,700.
Condos in 2010: 375 sales (15% short sales, 18% REOs),
54% paid with cash. Average price: $350,700
Condos in 2011: 295 sales (14% short sales, 27% REOs), 53%
paid with cash. average price: $299,100.
The hot buttons are still the foreclosures and now short
sales. A few years ago, less than half
of short sales would actually be approved.
Now we’re seeing most of them go through to a successful sale, given
that the buyer is patient enough. As far
as foreclosures go, it appears as though we still have a while before we’re done
with them. Those who have purchased
foreclosures or have attempted to purchase a foreclosure know that a buyer must
have their ducks in a row if they want to be the one to get the deal, as most
do end up with multiple offers if priced aggressively.
We hear people say often that “there is so much on the
market” when actually, that’s not really the case. Inventory levels are low, as compared with
the last 5 years or so. Inventory levels
typically drop during the winter season and then rise once again in the spring,
however if you compare levels now with levels from 2-3 years ago, they are
definitely lower (there are currently 175 condos on the market vs. 234 last
summer, and over 300 in the spring of 2009).
What we’ve been telling all of our clients is that
although we may not truly be “at the bottom” yet, now is a great time to buy
and ideally find just the property you want.
Even those looking to trade up are in a great position…they may be
selling one property at less than they had hoped, however if they’re purchasing
another property for a great deal they’ve actually made out with a lower tax
basis and a better property.
Although you can browse the MLS on almost any website
these days, you don’t get a totally accurate picture of what’s really
available. Within our MLS, buyers will
still see properties that are listed as “back-up” or “contingent short sales.” Back-up properties are typically in escrow
and waiting for buyers to remove contingencies.
Contingent short sales are short sales where the seller has accepted an
offer and is waiting for bank approval. It’s
important to make sure you’re getting accurate information, so don’t hesitate
to contact us for the latest info on a property.
We like to offer buyers our automated email service which
sends new and changed listings which match their criteria to their inbox so
they are well informed.
For those who definitely have to sell, the key is still
to price the property aggressively and put your best foot forward as far as
presentation goes.
Mammoth Weather:
Where is the snow!!!???? After
shattering the record last year for the most snowfall ever recorded, Mammoth is
starting this season off at the opposite end of the spectrum. That being said, Mammoth Mountain has done an
amazing job with their snowmaking to open as much of the mountain as possible. Just the other day, we skied with our
daughters over at Juniper Springs and had a great time. The weather pattern HAS given us some amazing
lake ice skating, however, which is definitely not a yearly thing. Although we’ve enjoyed the skating, it’s time
for some snow!!!!
Tara Peterson & Dennis Cox
Mammoth Realty Group
800-519-6550, 866-934-5852
visit us at www.MammothRealtySearch.com and www.MammothLakesForeclosures.com
Thursday, December 29, 2011
Saturday, April 9, 2011
Long time
Mammoth Lakes real estate update
Loooooooong time since our last blog! Our sincerest apologies! After a few rough years (starting in mid 2006) of dropping prices and uncertainty in the market, the Mammoth real estate market finally picked up in about the spring of 2009 and we’ve been quite busy since then! (Unlike our blog, we have been updating our REO website almost daily.)
Although prices may not be finished with their downward trend in some segments of the market, it does seem as though the “plummeting” is over. We have seen some price stabilization in certain segments of the market. Activity has been fairly consistent for the past couple of years, other than a few lulls here and there.
Supposedly, we have a couple more years of foreclosures coming our way, but the good news for Mammoth is that our foreclosures are selling as quickly as they’re listed in most cases. We’re definitely not seeing a glut of foreclosures. The foreclosures are, however, still the driving force as far as prices go.
If you’re still thinking about buying in Mammoth, it sure does seem like a good time to buy. The inventory selection is decent, interest rates are still low and prices are quite reasonable as compared with those at the peak in late 2005 and early 2006. Across the board, most of the prices that we’re seeing are back down to 2002/2003 levels, in some cases, lower.
Financing has been tough to get on many condo complexes in Mammoth because of how they look like ‘condo-hotels’ to most lenders (i.e. they have a front desk that handles nightly rentals). But our local Wells Fargo team has been approving more and more of these complexes over the last few months. So while cash had been king for the last few years, lending does seem to be getting more available.
As far as being a seller in this market, it’s all about price and presentation…buyers want it all right now. If you can price your property aggressively based on sales comps and can offer the property as turn-key as possible, then you usually have a good chance of selling.
As a very significant side note, Mammoth is in the midst of its biggest snowfall season ever recorded! The way it was dumping this past week, you would have thought it was a January/February storm! Plenty of fresh powder for all those up here already or on their way up.
Feel free to call us or email any questions you might have about the Mammoth real estate market!
Tara Peterson & Dennis Cox
Mammoth Realty Group
Thursday, August 6, 2009
Expanded Air Service to Mammoth Lakes
Fly to Mammoth from Seattle, Portland, San Jose, Reno and Los Angeles!
This news is HUGE! Last winter, Mammoth Lakes successfully resumed commercial air service (since 1998) with one flight a day to and from Los Angeles International Airport. Although Mammoth Mountain was committed to subsidizing flights, because the flights were so full they didn’t have to. With that success, a push has been made for additional flights and Horizon Air has committed to a healthy schedule of flights.
Now it’s official! We will now have daily flights to and from Seattle, Portland, Reno, San Jose, and Los Angeles (now 2 flights a day). You can click here to view the 2009/
2010 Flight schedule: http://mammothrealtysearch.com/files/images/9702/pdf/11249578680.pdf
As far as Mammoth Lakes real estate goes, we’ve definitely seen an increase in activity this spring and summer, although prices still seem to be sliding downwards. Interestingly, we’ve also seen our inventory remain about the same (about 265 condos on the market). That means that although we’ve been seeing new listings come on the market, just as many have been selling. Most recently, The Westin developer has drastically dropped their prices and is making a big push to get their residual inventory sold. If you’re looking for a great deal at The Westin, now could be the time! We also have plenty of foreclosures coming down the pipe that will continue to drive the prices for now. If you’re looking for more information on Mammoth real estate and/or foreclosures, please feel free to visit our website at www.MammothLakesForeclosures.com to see up to date information on all current foreclosure listings.
On another note, we’re seeing some bizarre weather here in Mammoth today. They’re calling for snow above 9,000 feet (haven’t ever seen it snow in August!) and we’ve already seen some hail fall. Summer should return in a couple of days so don’t worry if you’ve got plans to head up this weekend!
Tara Peterson & Dennis Cox
RE/MAX of Mammoth
P.S. Don’t forget to check out our main website at www.MammothRealtySearch.com
This news is HUGE! Last winter, Mammoth Lakes successfully resumed commercial air service (since 1998) with one flight a day to and from Los Angeles International Airport. Although Mammoth Mountain was committed to subsidizing flights, because the flights were so full they didn’t have to. With that success, a push has been made for additional flights and Horizon Air has committed to a healthy schedule of flights.
Now it’s official! We will now have daily flights to and from Seattle, Portland, Reno, San Jose, and Los Angeles (now 2 flights a day). You can click here to view the 2009/
2010 Flight schedule: http://mammothrealtysearch.com/files/images/9702/pdf/11249578680.pdf
As far as Mammoth Lakes real estate goes, we’ve definitely seen an increase in activity this spring and summer, although prices still seem to be sliding downwards. Interestingly, we’ve also seen our inventory remain about the same (about 265 condos on the market). That means that although we’ve been seeing new listings come on the market, just as many have been selling. Most recently, The Westin developer has drastically dropped their prices and is making a big push to get their residual inventory sold. If you’re looking for a great deal at The Westin, now could be the time! We also have plenty of foreclosures coming down the pipe that will continue to drive the prices for now. If you’re looking for more information on Mammoth real estate and/or foreclosures, please feel free to visit our website at www.MammothLakesForeclosures.com to see up to date information on all current foreclosure listings.
On another note, we’re seeing some bizarre weather here in Mammoth today. They’re calling for snow above 9,000 feet (haven’t ever seen it snow in August!) and we’ve already seen some hail fall. Summer should return in a couple of days so don’t worry if you’ve got plans to head up this weekend!
Tara Peterson & Dennis Cox
RE/MAX of Mammoth
P.S. Don’t forget to check out our main website at www.MammothRealtySearch.com
Thursday, July 2, 2009
4th of July kicks off summer in Mammoth Lakes
Getting ready for a busy July 4th weekend here in Mammoth Lakes, California.
With the Holiday weekend approaching and the Mammoth Motorcross just finishing up, our little town is starting to buzz with the arriving crowds. The weather couldn’t be better and looks to stay that way for a while. But then again, Mammoth has always been known for its stellar weather, especially when it comes to the summer months. Events over the coming weekend include the Footloose Freedom Mile (1-mile race on the parade route), followed by our small town parade along Main St and Old Mammoth Rd, followed by a pops concert at Mammoth Creek Park and then fireworks at Crowley Lake. Tent vendors will accompany beer gardens and live music along Main Street.
Also seen this time of year are thru-hikers on the Pacific Crest Trail taking a break and stocking up are seen walking through town to stock up on supplies and take a short break before they continue north. Families are donning helmets and pulling kids on bike trailers through town. Golfers and mtn bikers are loving the greens and trails. Campers and fisherpeople are filling campsites and lining the lakes.
As far as Mammoth real estate goes, we have definitely seen an increase in activity over the past month. Typically in the springtime we see a slow down in real estate activity and an increase in inventory. Things have been a bit different this spring. Our inventory is actually down compared with the winter inventory (only 252 condos on the market now when just a few months ago there were over 300). And there were 119 condo sales in the first half of 2009 vs only 74 in the last half of 2008 (a 61% increase!).
Most buyers we are working with feel that the bottom of the market is near and have been writing offers. We are seeing multiple offers on bank-owned listings and on well-priced properties (priced very comparable to foreclosures). And a few segments of the market are showing price support for a 'bottom.' That being said, we still have more foreclosures coming down the pipe in the near future.
Even on some of the newer developer-owned inventory (i.e. The Westin and Woodwinds) the developer is taking significantly less than their asking prices. One 2-bedroom that recently sold for $600,000 was listed for $819,000. I guess you could say prices are going up since the last one sold for $540,000 (ha!). The original prices for these 2-bedrooms were in the high $800’s (starting) and up to almost $1.4 million for the premium units.
If you’re looking for a deal, now sure seems to be the time. Although none of us have a crystal ball, we do think it’s going to be a busy summer. We’ll see if we’re right!
Tara Peterson & Dennis Cox
RE/MAX of Mammoth
With the Holiday weekend approaching and the Mammoth Motorcross just finishing up, our little town is starting to buzz with the arriving crowds. The weather couldn’t be better and looks to stay that way for a while. But then again, Mammoth has always been known for its stellar weather, especially when it comes to the summer months. Events over the coming weekend include the Footloose Freedom Mile (1-mile race on the parade route), followed by our small town parade along Main St and Old Mammoth Rd, followed by a pops concert at Mammoth Creek Park and then fireworks at Crowley Lake. Tent vendors will accompany beer gardens and live music along Main Street.
Also seen this time of year are thru-hikers on the Pacific Crest Trail taking a break and stocking up are seen walking through town to stock up on supplies and take a short break before they continue north. Families are donning helmets and pulling kids on bike trailers through town. Golfers and mtn bikers are loving the greens and trails. Campers and fisherpeople are filling campsites and lining the lakes.
As far as Mammoth real estate goes, we have definitely seen an increase in activity over the past month. Typically in the springtime we see a slow down in real estate activity and an increase in inventory. Things have been a bit different this spring. Our inventory is actually down compared with the winter inventory (only 252 condos on the market now when just a few months ago there were over 300). And there were 119 condo sales in the first half of 2009 vs only 74 in the last half of 2008 (a 61% increase!).
Most buyers we are working with feel that the bottom of the market is near and have been writing offers. We are seeing multiple offers on bank-owned listings and on well-priced properties (priced very comparable to foreclosures). And a few segments of the market are showing price support for a 'bottom.' That being said, we still have more foreclosures coming down the pipe in the near future.
Even on some of the newer developer-owned inventory (i.e. The Westin and Woodwinds) the developer is taking significantly less than their asking prices. One 2-bedroom that recently sold for $600,000 was listed for $819,000. I guess you could say prices are going up since the last one sold for $540,000 (ha!). The original prices for these 2-bedrooms were in the high $800’s (starting) and up to almost $1.4 million for the premium units.
If you’re looking for a deal, now sure seems to be the time. Although none of us have a crystal ball, we do think it’s going to be a busy summer. We’ll see if we’re right!
Tara Peterson & Dennis Cox
RE/MAX of Mammoth
Friday, May 1, 2009
Mammoth Lakes Village Woes
Friday, May 01, 2009
Spring isn’t quite sure if it's ready yet to stay here in Mammoth. After another little dousing of snow last week, we were treated with a beautiful spring day last weekend and now it looks like it’s snowing up on the mountain again. For those who ventured up to Mammoth last weekend to pick up their season passes for this year, they were treated with some fresh powder. Meanwhile just down the road the fishermen are out in swarms!
It truly is a wonderful time of year here in Mammoth Lakes. We’re seeing the golf courses start to come to life after being covered in snow all winter. Mountain bike trails, especially just outside of town, are completely accessible, fishing season has begun and the skiing/boarding is still great. As far as Mammoth Lakes real estate goes, activity has been pretty consistent over the past 5-6 months and although the town is relatively quiet, we’re seeing a fair number of deals go through. Our foreclosure inventory is low right now due to the recent government moratorium on foreclosures, but we are expect to see more come on the market this summer. Be sure to visit http://www.mammothlakesforeclosures.com/ every so often to see all the current bank-owned properties listed for sale.
Unfortunately, the commercial real estate market here is still suffering. Just recently the already ghostly Village lost three more tenants (LuLu’s Restaurant, 5 Burroughs Pizza and Rocky Mountain Chocolate Factory). Galerie Barjour had closed on March 28th. All have left due to the extremely high rents. The majority of the commercial space in the Village at Mammoth is currently owned by a real estate investment trust (REIT) called CNL. It’s rumored that CNL will sell and there is at least one buyer out there, but the price that CNL wants is insane, especially in the current economic climate. The good news is that “eventually” everything will work it self out, the commercial real estate in the Village will sell and the new owner will be able to offer reasonable and sustainable rents, thus giving us a thriving “village”. The question is, how long is that going to take?
Time to get out and enjoy some of that pristine mountain air here in the High Sierra!
Tara Peterson & Dennis Cox
RE/MAX of Mammoth
P.S. Don’t forget to check out our website at http://www.mammothrealtysearch.com/
Spring isn’t quite sure if it's ready yet to stay here in Mammoth. After another little dousing of snow last week, we were treated with a beautiful spring day last weekend and now it looks like it’s snowing up on the mountain again. For those who ventured up to Mammoth last weekend to pick up their season passes for this year, they were treated with some fresh powder. Meanwhile just down the road the fishermen are out in swarms!
It truly is a wonderful time of year here in Mammoth Lakes. We’re seeing the golf courses start to come to life after being covered in snow all winter. Mountain bike trails, especially just outside of town, are completely accessible, fishing season has begun and the skiing/boarding is still great. As far as Mammoth Lakes real estate goes, activity has been pretty consistent over the past 5-6 months and although the town is relatively quiet, we’re seeing a fair number of deals go through. Our foreclosure inventory is low right now due to the recent government moratorium on foreclosures, but we are expect to see more come on the market this summer. Be sure to visit http://www.mammothlakesforeclosures.com/ every so often to see all the current bank-owned properties listed for sale.
Unfortunately, the commercial real estate market here is still suffering. Just recently the already ghostly Village lost three more tenants (LuLu’s Restaurant, 5 Burroughs Pizza and Rocky Mountain Chocolate Factory). Galerie Barjour had closed on March 28th. All have left due to the extremely high rents. The majority of the commercial space in the Village at Mammoth is currently owned by a real estate investment trust (REIT) called CNL. It’s rumored that CNL will sell and there is at least one buyer out there, but the price that CNL wants is insane, especially in the current economic climate. The good news is that “eventually” everything will work it self out, the commercial real estate in the Village will sell and the new owner will be able to offer reasonable and sustainable rents, thus giving us a thriving “village”. The question is, how long is that going to take?
Time to get out and enjoy some of that pristine mountain air here in the High Sierra!
Tara Peterson & Dennis Cox
RE/MAX of Mammoth
P.S. Don’t forget to check out our website at http://www.mammothrealtysearch.com/
Saturday, April 18, 2009
Springtime in Mammoth Lakes
Springtime is in the air here in Mammoth! It’s truly a stunning day and the next few promise to deliver temperatures reminiscent of early summer. We’re experiencing that wonderful time of year when you can get your fill of skiing or boarding, hop on your bike for a quick ride around town and even make it down to Bishop for a short round of golf. But don’t fear, rumor has it that Mammoth Mountain will be open through the Memorial Day Weekend. With tons of snow on the Mountain the skiing/boarding has been great and those who’ve recently purchased their Mammoth Mountain season passes will be pleasantly surprised if they head up here for some spring skiing.
In light of the current economic situation, the Mammoth real estate market has been fairly active over the past five months or so. Most of the buyers have come to realize that the bottom is somewhere near and that if they’re looking for great prices and selection, now is a good time to buy. Where we’ve seen the activity is in those properties that have been priced aggressively to sell. Although we haven’t been bombarded with foreclosures here in Mammoth, they’ve definitely been the driving factor in the prices that we’re seeing now.
As far as Mammoth real estate prices go, we have started to see some signs that certain segments of the market MIGHT be bottoming out. In the Village at Mammoth(Grand Sierra Lodge, White Mountain Lodge and Lincoln House) we’ve seen the last six sales for 2-bedrooms come in around the high $300’s and low $400’s, with one of the more recent sales closing at $440K. Also, In Snowcreek V, we’ve seen a number of 2-bedrooms sell in about the same price range (around $430K) so it appears as though those prices are holding for now.
All that being said, the foreclosures have not ended and we expect to see more come on the market in the future. Currently there are just six foreclosure properties listed in the Mammoth Lakes area with one of those being a commercial property (no single family homes). With interest rates still historically low and sales prices back to 2003 (sometimes 2002) numbers, we expect to see a busy spring and summer season here in Mammoth.
On another note, air service for the Mammoth area came to an end for this ski season (sadly) on April 12th. Because it was such a huge success, there is talk of having multiple flights next ski season (more LA, Bay Area??, Las Vegas??) and possibly even service for the summer of 2010. I can personally say (Tara) that I was fortunate enough to take advantage of the service more than a few times this season and it was wonderful! Even on some days when it was dumping and blowing here in Mammoth, the flight out was perfect. Keep an eye on Horizon Air for next ski season.
Don’t forget, Fishing Season opens next week!
Tara Peterson and Dennis Cox
RE/MAX of Mammoth
Don't forget to visit our website for the latest on foreclosure listings and general Mammoth information!
In light of the current economic situation, the Mammoth real estate market has been fairly active over the past five months or so. Most of the buyers have come to realize that the bottom is somewhere near and that if they’re looking for great prices and selection, now is a good time to buy. Where we’ve seen the activity is in those properties that have been priced aggressively to sell. Although we haven’t been bombarded with foreclosures here in Mammoth, they’ve definitely been the driving factor in the prices that we’re seeing now.
As far as Mammoth real estate prices go, we have started to see some signs that certain segments of the market MIGHT be bottoming out. In the Village at Mammoth(Grand Sierra Lodge, White Mountain Lodge and Lincoln House) we’ve seen the last six sales for 2-bedrooms come in around the high $300’s and low $400’s, with one of the more recent sales closing at $440K. Also, In Snowcreek V, we’ve seen a number of 2-bedrooms sell in about the same price range (around $430K) so it appears as though those prices are holding for now.
All that being said, the foreclosures have not ended and we expect to see more come on the market in the future. Currently there are just six foreclosure properties listed in the Mammoth Lakes area with one of those being a commercial property (no single family homes). With interest rates still historically low and sales prices back to 2003 (sometimes 2002) numbers, we expect to see a busy spring and summer season here in Mammoth.
On another note, air service for the Mammoth area came to an end for this ski season (sadly) on April 12th. Because it was such a huge success, there is talk of having multiple flights next ski season (more LA, Bay Area??, Las Vegas??) and possibly even service for the summer of 2010. I can personally say (Tara) that I was fortunate enough to take advantage of the service more than a few times this season and it was wonderful! Even on some days when it was dumping and blowing here in Mammoth, the flight out was perfect. Keep an eye on Horizon Air for next ski season.
Don’t forget, Fishing Season opens next week!
Tara Peterson and Dennis Cox
RE/MAX of Mammoth
Don't forget to visit our website for the latest on foreclosure listings and general Mammoth information!
Wednesday, February 4, 2009
Mammoth Lakes Foreclosure and Short Sale update
Mammoth Lakes Foreclosures
This blog post is long overdue! We have been very busy with selling foreclosures these past six months but are now in a lull, so it is finally time to write about what our real estate market has been doing in Mammoth Lakes, CA. Let's start off with some statistics for Mammoth condos and homes since 1/1/08:
- Total # of foreclosed properties sold in Mammoth Lakes: 26 condos and 5 homes (with 4 more condos in escrow)
- Total # of foreclosures as a % of total sales: 13.5% for condos and 10% for homes (foreclosures do not account for a high volume of sales as they do in many other areas of the state where they account for over 50%.
- Current # of foreclosure listings in Mammoth: only 2 condos (out of 290 total) and 1 commercial building.
- Average time on market for foreclosures: 95 days for condos and 37 days for homes (this includes time in escrow - so the 5 homes sold as soon as they were listed) vs. 153 days for fair market condos and 184 days for fair market homes.
- Average sale price as a % of original list price: 88% for condos and 97% for homes (vs. 87% for fair market condos and 84% for fair market homes).
The appetite for these REO's has been high and there are still plenty of buyers with good credit and cash who are snapping them up quickly. Though they are not a majority of our sales, REO's definitely have affected list prices. Even if the property you want is not a foreclosure, it can be a tool to negotiate your offer if there has been a foreclosure nearby.
This first rash of foreclosures came to an abrupt halt over the Dec '08 holidays as banks, asset management companies, REO agents and, more importantly, homeowners in default, needed a break. We were surprised when we would start getting emails from asset managers (who initially act as the 'seller' of the property before they get upper mgt approval from the bank) over weekends.
The word on the street is that the foreclosure pipeline will be ramping up again very soon and will probably produce more REO's than 2008. Most foreclosures have been localized to the new condo-hotel-like projects that were launched before the peak of the market in late '05 / early '06. The lucky ones flipped (sold soon after they bought) right at the peak. The unlucky ones bought at the peak with the same intent but got caught without any buyers to complete the flip. 18 of the 58 short sale and foreclosure properties (31%) were/are at Intrawest-built projects (The Village, Solstice, Cabins, Juniper Springs Lodge, Sunstone, Eagle Run). We may even see some at the new Westin Monache in 2009 and even more at the Village.
RE/MAX of Mammoth's involvement
Our broker was prescient enough to pay attention and go after foreclosures way before the first one was listed. He encouraged us to watch the local paper for notices of default, attend auctions at our escrow building, and to read articles and blogs about short sales and foreclosures. Listing foreclosures is the tough part - the main REO listing agent in our office must network with banks, attend their training classes, transfer utilities into her name, convince tenants to move out, hire contractors to fix up damage, change locks, and then when the property gets listed and into escrow...train other agents how to write and submit the offers, work with many different escrow companies, and finally usually give up some commission back to the asset management company. But now, those of us in the office are reaping the rewards from capturing this niche:
- Total # of foreclosed properties sold in Mono/Inyo counties: 40
- Total # of foreclosures that RE/MAX of Mammoth has represented: 29 listings + 14 sales (54% of the 80 total transaction 'sides')
- Total # of foreclosures that Tara & Dennis have represented: 8 (19%)
Selling foreclosures is a whole different ball game than dealing with normal sales and homeowners. Banks are unemotional and are trying to raise cash quickly, so they are pricing these assets very well. We have learned how banks work and how to write the offers that will get accepted and how to handle the new negotiating and escrow procedures. We are happy to share what we have learned - just call or email us.
A few words on short sales
Because of the recent lull in the REO market, the only apparent 'good deals' on the Multiple Listing Service (MLS) are short sale listings. Seller can list their properties at whatever price they want because it will not be up to them whether it sells at this price or not. Everything is completely up to the bank(s) who have the loan(s) on the property. Short sales have typically not been successful up here because either:
(1) the bank finally approves it 4-8 weeks later and the buyer has since moved on to another property or
(2) because the seller does not qualify for a short sale, meaning they do not qualify for 'hardship', however the bank defines it.
I am currently negotiating three short sales - one went very quickly, one took 4 weeks for bank approval and the other is in week 2 of waiting for bank approval.
Out of 290 condos listed on the market today, 17 are listed as short sales (6%) and 6 more have offers accepted by the sellers but are awaiting bank approval. Short sales can be good deals, but only 3 have successfully closed escrow since the downturn. So if you want to make an offer on a short sale listing, be patient but also keep watching for new listings while you are waiting for bank approval.
When you search online for listings or get a listing handout at a real estate office, be sure to read the fine print or ask about the 'listing type' - short sales may show up as "SSL" (vs. the traditional "RLA" - residential listing agreement). Sellers and their agents should sign a 'short sale listing' addendum when the property is listed for less than what is owed on it.
Overall Market
In this economy, most everyone is suffering. It is interesting how often I hear people asking the once-taboo question, 'how is your business doing?' There is a Obama-esque feeling that we're all in this together and we need to keep discussing and processing the pains and sufferings of those homeowners who can no longer afford payments due to a pay cut, loss of a job, high medical bills or a high interest-only loan that sounded good at the time. Up in Mammoth, most properties being foreclosed upon are investor-owned who tried their hand at flipping or who relied on claims of higher rental income. What a lesson we are all learning.
The flip side is that there are good buying opportunities now and even greater buying opportunities soon ahead. If you are interested, register your name with us so that you get our email blast for the latest foreclosure listing. And also be sure to check our www.MammothLakesForeclosures.com website frequently (which we update any time there is a change).
Most of our clients right now are skiing families who have a kid or two on the Mammoth ski team who come up about 3 weekends per month during the ski season. They assign importance to getting in the car and having forced quality time with their kids on the car ridge up and back. And they get to ski, sled, ice skate and hang out in their mountain condo/home together as a family.
-Dennis C. & Tara P.
This blog post is long overdue! We have been very busy with selling foreclosures these past six months but are now in a lull, so it is finally time to write about what our real estate market has been doing in Mammoth Lakes, CA. Let's start off with some statistics for Mammoth condos and homes since 1/1/08:
- Total # of foreclosed properties sold in Mammoth Lakes: 26 condos and 5 homes (with 4 more condos in escrow)
- Total # of foreclosures as a % of total sales: 13.5% for condos and 10% for homes (foreclosures do not account for a high volume of sales as they do in many other areas of the state where they account for over 50%.
- Current # of foreclosure listings in Mammoth: only 2 condos (out of 290 total) and 1 commercial building.
- Average time on market for foreclosures: 95 days for condos and 37 days for homes (this includes time in escrow - so the 5 homes sold as soon as they were listed) vs. 153 days for fair market condos and 184 days for fair market homes.
- Average sale price as a % of original list price: 88% for condos and 97% for homes (vs. 87% for fair market condos and 84% for fair market homes).
The appetite for these REO's has been high and there are still plenty of buyers with good credit and cash who are snapping them up quickly. Though they are not a majority of our sales, REO's definitely have affected list prices. Even if the property you want is not a foreclosure, it can be a tool to negotiate your offer if there has been a foreclosure nearby.
This first rash of foreclosures came to an abrupt halt over the Dec '08 holidays as banks, asset management companies, REO agents and, more importantly, homeowners in default, needed a break. We were surprised when we would start getting emails from asset managers (who initially act as the 'seller' of the property before they get upper mgt approval from the bank) over weekends.
The word on the street is that the foreclosure pipeline will be ramping up again very soon and will probably produce more REO's than 2008. Most foreclosures have been localized to the new condo-hotel-like projects that were launched before the peak of the market in late '05 / early '06. The lucky ones flipped (sold soon after they bought) right at the peak. The unlucky ones bought at the peak with the same intent but got caught without any buyers to complete the flip. 18 of the 58 short sale and foreclosure properties (31%) were/are at Intrawest-built projects (The Village, Solstice, Cabins, Juniper Springs Lodge, Sunstone, Eagle Run). We may even see some at the new Westin Monache in 2009 and even more at the Village.
RE/MAX of Mammoth's involvement
Our broker was prescient enough to pay attention and go after foreclosures way before the first one was listed. He encouraged us to watch the local paper for notices of default, attend auctions at our escrow building, and to read articles and blogs about short sales and foreclosures. Listing foreclosures is the tough part - the main REO listing agent in our office must network with banks, attend their training classes, transfer utilities into her name, convince tenants to move out, hire contractors to fix up damage, change locks, and then when the property gets listed and into escrow...train other agents how to write and submit the offers, work with many different escrow companies, and finally usually give up some commission back to the asset management company. But now, those of us in the office are reaping the rewards from capturing this niche:
- Total # of foreclosed properties sold in Mono/Inyo counties: 40
- Total # of foreclosures that RE/MAX of Mammoth has represented: 29 listings + 14 sales (54% of the 80 total transaction 'sides')
- Total # of foreclosures that Tara & Dennis have represented: 8 (19%)
Selling foreclosures is a whole different ball game than dealing with normal sales and homeowners. Banks are unemotional and are trying to raise cash quickly, so they are pricing these assets very well. We have learned how banks work and how to write the offers that will get accepted and how to handle the new negotiating and escrow procedures. We are happy to share what we have learned - just call or email us.
A few words on short sales
Because of the recent lull in the REO market, the only apparent 'good deals' on the Multiple Listing Service (MLS) are short sale listings. Seller can list their properties at whatever price they want because it will not be up to them whether it sells at this price or not. Everything is completely up to the bank(s) who have the loan(s) on the property. Short sales have typically not been successful up here because either:
(1) the bank finally approves it 4-8 weeks later and the buyer has since moved on to another property or
(2) because the seller does not qualify for a short sale, meaning they do not qualify for 'hardship', however the bank defines it.
I am currently negotiating three short sales - one went very quickly, one took 4 weeks for bank approval and the other is in week 2 of waiting for bank approval.
Out of 290 condos listed on the market today, 17 are listed as short sales (6%) and 6 more have offers accepted by the sellers but are awaiting bank approval. Short sales can be good deals, but only 3 have successfully closed escrow since the downturn. So if you want to make an offer on a short sale listing, be patient but also keep watching for new listings while you are waiting for bank approval.
When you search online for listings or get a listing handout at a real estate office, be sure to read the fine print or ask about the 'listing type' - short sales may show up as "SSL" (vs. the traditional "RLA" - residential listing agreement). Sellers and their agents should sign a 'short sale listing' addendum when the property is listed for less than what is owed on it.
Overall Market
In this economy, most everyone is suffering. It is interesting how often I hear people asking the once-taboo question, 'how is your business doing?' There is a Obama-esque feeling that we're all in this together and we need to keep discussing and processing the pains and sufferings of those homeowners who can no longer afford payments due to a pay cut, loss of a job, high medical bills or a high interest-only loan that sounded good at the time. Up in Mammoth, most properties being foreclosed upon are investor-owned who tried their hand at flipping or who relied on claims of higher rental income. What a lesson we are all learning.
The flip side is that there are good buying opportunities now and even greater buying opportunities soon ahead. If you are interested, register your name with us so that you get our email blast for the latest foreclosure listing. And also be sure to check our www.MammothLakesForeclosures.com website frequently (which we update any time there is a change).
Most of our clients right now are skiing families who have a kid or two on the Mammoth ski team who come up about 3 weekends per month during the ski season. They assign importance to getting in the car and having forced quality time with their kids on the car ridge up and back. And they get to ski, sled, ice skate and hang out in their mountain condo/home together as a family.
-Dennis C. & Tara P.
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