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.
Wednesday, February 4, 2009
Saturday, August 23, 2008
Olympic Running ties to Mammoth
Go Ryan Hall!! We are anxiously awaiting the start of the men's Olympic marathon in a few hours and just wanted to voice a cyber cheer for you. Your NY Trials and London marathons were thrilling and we know how hard you work and admire your drive to succeed and how you balance it with your family (Hi Sara) and spiritual life.
We are proud of the other Mammoth Lakes, CA, homeowners who are representing us in Beijing. Congratulations to Deena Kastor (women's marathon), Ian Dobson (men's 5,000m) and Jen Rhines (women's 5000m), for making the Olympic team and representing the US with their hard work. Andrew reports that Deena is in good spirits (after breaking her foot 5km into the race), though I know her competitive nature probably has her just as frustrated as we all imagine ourselves to be if we were in her Asics shoes.
Ian, you da man. Just for being so positive all the time and so supportive of others.
Jen, congratulations for qualifying for the medal round of the 5,000. Hope the heel gets better quickly. Good luck in Europe in the next few weeks.
Congratulations also to coach Terrence Mahon. The commitment and the care shown to your runners is very apparent. They guy never stops working.
Finally, thanks for the live updates from Beijing to Andrew "Duuude" Kastor, who sacrificed defending his title in the Leuven 800 this year to happily support his wife. Sorry for the expensive phone call on your birthday - Salsa's carne asada burrito is on me when you get back.
See you all back here soon. I think the Looney Bean and Salsa's have gone out of business with you gone (unless Mike McKeeman is making up for it on his own). -DC and Fam
We are proud of the other Mammoth Lakes, CA, homeowners who are representing us in Beijing. Congratulations to Deena Kastor (women's marathon), Ian Dobson (men's 5,000m) and Jen Rhines (women's 5000m), for making the Olympic team and representing the US with their hard work. Andrew reports that Deena is in good spirits (after breaking her foot 5km into the race), though I know her competitive nature probably has her just as frustrated as we all imagine ourselves to be if we were in her Asics shoes.
Ian, you da man. Just for being so positive all the time and so supportive of others.
Jen, congratulations for qualifying for the medal round of the 5,000. Hope the heel gets better quickly. Good luck in Europe in the next few weeks.
Congratulations also to coach Terrence Mahon. The commitment and the care shown to your runners is very apparent. They guy never stops working.
Finally, thanks for the live updates from Beijing to Andrew "Duuude" Kastor, who sacrificed defending his title in the Leuven 800 this year to happily support his wife. Sorry for the expensive phone call on your birthday - Salsa's carne asada burrito is on me when you get back.
See you all back here soon. I think the Looney Bean and Salsa's have gone out of business with you gone (unless Mike McKeeman is making up for it on his own). -DC and Fam
Monday, July 14, 2008
Flights to Mammoth on December 18th
It's Official! You can fly from LAX to Mammoth!
Costs: Horizon Air (part of Alaska Air) is officially selling tickets from LAX to Mammoth / Yosemite Airport! I just went to http://www.horizonair.com/ and plugged in LAX - MMH on December 18th and it quoted me $207.50 round trip including taxes and fees! They will have some reduced fares ($79 each way) for select days in January...probably Mammoth Ski Area's annual "Midweek Madness" which occurs each January.
About the airplane: From http://www.marketwatch.com/ 's announcement today about the Horizon flights to Mammoth, "Horizon's flight to Mammoth will be operated with the airline's Bombardier Q400. This 74/76-seat, high-speed, twin-engine turboprop is one of the most technologically advanced regional aircraft in the world. It's as quiet and comfortable as a jet - thanks to its special technology that suppresses noise and vibration, its generously sized overhead storage bins, its unobstructed under-seat space, and its ample headroom (6' 5"). The Q400 is also among the most environmentally friendly aircraft today, burning 30% less fuel and producing 30% lower emissions than comparable jets. "
Promotion: We're so excited that we're offering to pick you up. Be the first to email us if you are on one of the first flights to Mammoth on December 18th or 19th and we'll pick you and your family / luggage / skis / snowboards for free and deliver you to your place! Just email your itinerary confirmation to info@MammothRealtySearch.com and we'll coordinate the details. We'll also deliver you back to the airport for your departure flight.
Costs: Horizon Air (part of Alaska Air) is officially selling tickets from LAX to Mammoth / Yosemite Airport! I just went to http://www.horizonair.com/ and plugged in LAX - MMH on December 18th and it quoted me $207.50 round trip including taxes and fees! They will have some reduced fares ($79 each way) for select days in January...probably Mammoth Ski Area's annual "Midweek Madness" which occurs each January.
About the airplane: From http://www.marketwatch.com/ 's announcement today about the Horizon flights to Mammoth, "Horizon's flight to Mammoth will be operated with the airline's Bombardier Q400. This 74/76-seat, high-speed, twin-engine turboprop is one of the most technologically advanced regional aircraft in the world. It's as quiet and comfortable as a jet - thanks to its special technology that suppresses noise and vibration, its generously sized overhead storage bins, its unobstructed under-seat space, and its ample headroom (6' 5"). The Q400 is also among the most environmentally friendly aircraft today, burning 30% less fuel and producing 30% lower emissions than comparable jets. "
Promotion: We're so excited that we're offering to pick you up. Be the first to email us if you are on one of the first flights to Mammoth on December 18th or 19th and we'll pick you and your family / luggage / skis / snowboards for free and deliver you to your place! Just email your itinerary confirmation to info@MammothRealtySearch.com and we'll coordinate the details. We'll also deliver you back to the airport for your departure flight.
Tuesday, July 8, 2008
Air Service to begin from LAX to Mammoth Yosemit Airport Dec 14th, 2008
It seems as though dream will finally become reality according to a blog by Michael Carter of Aero Pacific Images / SoCal Aircraft spotting & airline news. According to this recent blog, Horizon Air is scheduled to begin selling tickets for their new route from LAX to Mammoth Yosemite Airport starting July 14th, 2008. Air service is scheduled to begin on December 14th of this year with one flight a day until spring of 2009.
This is a huge step for the Town of Mammoth Lakes and the stunning year round resort community of Mammoth Lakes. Not only will it allow visitors the option of being able to fly (currently only private planes and charters fly here), but it will also give locals the opportunity to leave for their coveted vacations directly from Mammoth as opposed to having to drive to Reno, NV or Los Angeles first.
No word yet on what ticket costs will be, however we'll keep you posted.
Tara & Dennis
For more information on Mammoth and its real estate market, visit us at www.MammothRealtySearch.com .
This is a huge step for the Town of Mammoth Lakes and the stunning year round resort community of Mammoth Lakes. Not only will it allow visitors the option of being able to fly (currently only private planes and charters fly here), but it will also give locals the opportunity to leave for their coveted vacations directly from Mammoth as opposed to having to drive to Reno, NV or Los Angeles first.
No word yet on what ticket costs will be, however we'll keep you posted.
Tara & Dennis
For more information on Mammoth and its real estate market, visit us at www.MammothRealtySearch.com .
Friday, July 4, 2008
Mammoth Airport - Conflicting News / 4th of July
According to http://www.ifyouski.com/, scheduled air service will begin for the 2008-2009 ski season to Mammoth/ Yosemite Airport (MMH) from Los Angeles International (LAX) on December 18, 2008. Daily service provided by Horizon Airlines will continue through April 12, 2009. Airline reservations will launch July 14th, 2008. Flight schedule is as follows:
LAX - MMH 14:20 hrs - 15:25 hrs
MMH - LAX 16:05 hrs - 17:10 hrs
The aircraft used will be the Q400, an 80-seat aircraft which services many of Horizon Airlines shorter domestic routes. Mammoth/Yosemite Airport is located only 15 minutes away from the Mammoth Lakes.
However, http://www.visitmammoth.com/ says, "At this time there is no scheduled air service into the Mammoth/Yosemite Airport. An annoucement regarding commercial air service to MMH Airport from LAX will be made on Monday, July 14, 2008. "
And yet, reliable sources say that Bill Manning, airport manager, confirmed that a contract has been signed with Horizon Air.
If/when an official announcement is released, we will post it here.
***
Happy 4th of July! I'm getting ready for our Footloose Freedom Mile put on by the High Sierra Striders to pass by my window here at RE/MAX, followed by our town parade (the usual horses, hokey floats, and shamelss plugs by local businesses), and then the 1st annual Pops Concert at Mammoth Creek Park at 2pm, where yours truly will be tooting his own horn in the back of the orchestra for rousing renditions of Star Spangled Banner, America, and the like.
LAX - MMH 14:20 hrs - 15:25 hrs
MMH - LAX 16:05 hrs - 17:10 hrs
The aircraft used will be the Q400, an 80-seat aircraft which services many of Horizon Airlines shorter domestic routes. Mammoth/Yosemite Airport is located only 15 minutes away from the Mammoth Lakes.
However, http://www.visitmammoth.com/ says, "At this time there is no scheduled air service into the Mammoth/Yosemite Airport. An annoucement regarding commercial air service to MMH Airport from LAX will be made on Monday, July 14, 2008. "
And yet, reliable sources say that Bill Manning, airport manager, confirmed that a contract has been signed with Horizon Air.
If/when an official announcement is released, we will post it here.
***
Happy 4th of July! I'm getting ready for our Footloose Freedom Mile put on by the High Sierra Striders to pass by my window here at RE/MAX, followed by our town parade (the usual horses, hokey floats, and shamelss plugs by local businesses), and then the 1st annual Pops Concert at Mammoth Creek Park at 2pm, where yours truly will be tooting his own horn in the back of the orchestra for rousing renditions of Star Spangled Banner, America, and the like.
-DC
Saturday, June 28, 2008
What's up with the Mammoth real estate market?
What's up with the Mammoth market?
While the number of sales has stopped decelerating and prices are bottoming out, buyer activity is picking up. My partner and I have fielded more Internet and phone inquiries and shown more property in the last 2 weeks than in the last 2 months. And I have more appointments scheduled for July than I did for most of all last summer.
Looking at real estate used to be a national pastime during the recent boom years - and then it became uncool as buyers waited to try and time the bottom of the market. We are all listening to the media and water cooler conversation about predictions for further market worsening. I say we take note of how Warren Buffett invests; look at what everyone is saying/doing and do the exact opposite.
In Mammoth, buyers are still buying quality properties at discounted prices and many prospectors are still testing sellers by writing low ball offers on numerous properties. We still get some insulted sellers, but it has become more of the normal buying strategy and sellers are getting more used to it. However, with the lack of fire sales and foreclosures (Mono County has only 1 foreclosure per 1114 properties where the California average is 1 out of every 183, per RealtyTrac), buyers are realizing that we might indeed be near bottom, at least for Mammoth.
No one can know for sure until we are past the bottom, but buyers should buy according to their own time lines and criteria. Purchasing now as opposed to a year or two from now gives you the opportunity to begin creating those memories that are priceless. If you want your kids to see what 'seasons' are, how wildflowers grow, and how the sun feels different up here, then come up to Mammoth this summer and rent a condo before you decide to buy.
If life is getting shorter, kids are graduating college soon and if mountain air is therapy for you, then it should not matter what the short term market prognosis is. And talk to a local expert about the intricacies of rental programs, homeowners associations and vacation homeowners services. If Mammoth is in your life's plan, then forget the short term and start setting goals to meet with one of us, sign up for our automatic 'Property Tracker' and come up to start getting familiar with our neighborhoods.
A word about our Condo Inventory:
You must wade through our inventory to find the good listings. Of our 292 condos on the Mammoth Lakes market, only 4 are foreclosures, 9 are short sale listings (which you should not touch with any length of pole unless you do not mind waiting 3+ months for a response to your offer), and 62 (or 21%) are condotels at The Village at Mammoth and The Westin Monache, which are out of favor in the eyes of lenders (requiring much higher down payments) and out of favor with buyers, as only 3 sales out of the 62 condos sold since March 1st have been in The Village or Westin (only 4.8% of sales).
Buyers looking for great deals would be wise to talk to a local agent such as Tara or myself to weed out the bulk of the listings that are short sales, fractionals, condo complexes facing large special assessments, or that are just plain over-priced.
Foreclosure Update: There are 7 foreclosures in Mammoth Lakes currently on our market and only 6 additional foreclosed properties that have sold since this mess began. As a percentage of homes, this is lower than most areas of California. We do know of about 4 more foreclosures coming on the market in the next month or so, and several more properties with notices of default.
It is a stunning time of year here in Mammoth. Blue skies, 78 degrees. Just about perfect. Come enjoy the paradise we call home. -Dennis & Tara
While the number of sales has stopped decelerating and prices are bottoming out, buyer activity is picking up. My partner and I have fielded more Internet and phone inquiries and shown more property in the last 2 weeks than in the last 2 months. And I have more appointments scheduled for July than I did for most of all last summer.
Looking at real estate used to be a national pastime during the recent boom years - and then it became uncool as buyers waited to try and time the bottom of the market. We are all listening to the media and water cooler conversation about predictions for further market worsening. I say we take note of how Warren Buffett invests; look at what everyone is saying/doing and do the exact opposite.
In Mammoth, buyers are still buying quality properties at discounted prices and many prospectors are still testing sellers by writing low ball offers on numerous properties. We still get some insulted sellers, but it has become more of the normal buying strategy and sellers are getting more used to it. However, with the lack of fire sales and foreclosures (Mono County has only 1 foreclosure per 1114 properties where the California average is 1 out of every 183, per RealtyTrac), buyers are realizing that we might indeed be near bottom, at least for Mammoth.
No one can know for sure until we are past the bottom, but buyers should buy according to their own time lines and criteria. Purchasing now as opposed to a year or two from now gives you the opportunity to begin creating those memories that are priceless. If you want your kids to see what 'seasons' are, how wildflowers grow, and how the sun feels different up here, then come up to Mammoth this summer and rent a condo before you decide to buy.
If life is getting shorter, kids are graduating college soon and if mountain air is therapy for you, then it should not matter what the short term market prognosis is. And talk to a local expert about the intricacies of rental programs, homeowners associations and vacation homeowners services. If Mammoth is in your life's plan, then forget the short term and start setting goals to meet with one of us, sign up for our automatic 'Property Tracker' and come up to start getting familiar with our neighborhoods.
A word about our Condo Inventory:
You must wade through our inventory to find the good listings. Of our 292 condos on the Mammoth Lakes market, only 4 are foreclosures, 9 are short sale listings (which you should not touch with any length of pole unless you do not mind waiting 3+ months for a response to your offer), and 62 (or 21%) are condotels at The Village at Mammoth and The Westin Monache, which are out of favor in the eyes of lenders (requiring much higher down payments) and out of favor with buyers, as only 3 sales out of the 62 condos sold since March 1st have been in The Village or Westin (only 4.8% of sales).
Buyers looking for great deals would be wise to talk to a local agent such as Tara or myself to weed out the bulk of the listings that are short sales, fractionals, condo complexes facing large special assessments, or that are just plain over-priced.
Foreclosure Update: There are 7 foreclosures in Mammoth Lakes currently on our market and only 6 additional foreclosed properties that have sold since this mess began. As a percentage of homes, this is lower than most areas of California. We do know of about 4 more foreclosures coming on the market in the next month or so, and several more properties with notices of default.
It is a stunning time of year here in Mammoth. Blue skies, 78 degrees. Just about perfect. Come enjoy the paradise we call home. -Dennis & Tara
Wednesday, May 21, 2008
Mammoth Yosemite Airport update - Horizon Air on the horizon
Great news for our Mammoth/Yosemite Airport!
The FAA recently issued a Record of Decision conditionally approving Horizon Air to establish air service to Mammoth Yosemite Airport (MMH) beginning this December 2008. This definitive step towards having commercial air service into Mammoth Lakes, California once again is good news for our community and for those working for so many years on this idea. For more information, please see the following press release dated May 19th from Stuart Brown, Community Relations Manager for the Town of Mammoth Lakes:
The FAA recently issued a Record of Decision conditionally approving Horizon Air to establish air service to Mammoth Yosemite Airport (MMH) beginning this December 2008. This definitive step towards having commercial air service into Mammoth Lakes, California once again is good news for our community and for those working for so many years on this idea. For more information, please see the following press release dated May 19th from Stuart Brown, Community Relations Manager for the Town of Mammoth Lakes:
"FAA ISSUES RECORD OF DECISION FOR MAMMOTH YOSEMITE AIRPORT"
Mammoth Lakes, CA – Scheduled commercial air service is one step closer with the Federal Aviation Administration (FAA) issuing its Record of Decision (ROD) approving the proposed Horizon Air Operations Specifications Amendment to allow scheduled air service to Mammoth Yosemite Airport (MMH).
The ROD allows Horizon Air to proceed with implementing commercial air service with two daytime flights between MMH and Los Angeles International Airport beginning in the winter ski season of 2008/2009 (approximately December to April) provided the Town of Mammoth Lakes obtains a 14 CFR Part 139 Class 1 Airport Operating Certificate for MMH. Horizon Air’s initial proposed service utilizes a 76 seat Bombardier DHC 8-400 (Q-400) turbopropeller aircraft.
“This Record of Decision represents a significant milestone for Mammoth in reinstituting commercial air service to Mammoth Yosemite Airport. The process has been lengthy, arduous and not without significant challenges, but the end result will greatly contribute to the economic sustainability of our community,” stated Karen Johnston, Assistant Town Manager. The aviation forecast anticipates that the subsidized winter ski season service could increase to eight flights per day by the winter ski season of 2011/2012 as additional regional markets such as Las Vegas, Northern California, San Diego or alternate Southern California markets are added.
Winter service is not expected to exceed eight flights per day due to the airport facility physical constraints (e.g., terminal capacity, available apron area). The forecast estimates that unsubsidized summer (July through August) air service could begin in 2012/2013 with two flights daily from LAX.
The Horizon Air Final Environmental Impact Statement (FEIS) was prepared and issued by the FAA in compliance with the National Environmental Policy Act of 1969 (NEPA) and the implementing regulations of the Council on Environmental Quality (CEQ). Although the Horizon Air FEIS demonstrates that there would be no significant impacts associated with the proposed action, the FAA prepared an EIS because FAA considered it most prudent in light of the previous injunction issued by the U.S. District Court for the Northern District of California for the Town’s proposed expansion of the airport, and the resources potentially affected by establishment of scheduled air carrier service. "
And to everyone who has said, "I'll believe it when I see it," the work has already begun on the runway, as seen in this photo taken on May 19th.
There were at least a dozen bulldozers scraping the runway getting ready to re-surface it. Local pilot Jon Eller explains that they should be getting rid of a small crown in the runway that prevents pilots at one end of the runway see all the way to the other end. For more information on the airport, including its current closure, click HERE.To contact us regarding real estate opportunities in and around Mammoth Lakes, visit our website.
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