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Peaks and Valleys by Mickey Brown |
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Thursday, 14 May 2009 |
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Entering the new year with signs of recovery
Green Shoots, a noun, means signs of economic recovery.
According to a recent Time Magazine article, Green Shoots was one of the buzzwords of 2009.
Since I arrived in Mammoth Lakes full-time in 2001, which was almost the beginning of the decade, on this first month of the New Year, I wanted to share with you what I personally have seen happen to the Mammoth real estate market. It has been a wild ride!
In 2001, there were 281 condominium sales with a median price of $216,000 and an additional 114 single family sales with a median price of $322,000.
As far as I know, up to that point, in the history of Mammoth real estate there had never been a residential sale that exceeded $1 million.
Juniper Springs Lodge was only recently completed and The Village was under construction. And while 9/11 was a tragedy for the nation, it was actually an economic boom for Mammoth tourism as families felt safe vacationing in our town.
During the first half of the decade, prices steadily appreciated with Fourth Quarter 2005 and First quarter 2006 being the height of the market. During 2005, there were 632 condominium sales with a median price of $525,000 and 186 single family sales with a median price of $754,500. Included in those closed transactions were 103 or 13 percent of those sales were more than $1 million.
In four years, real estate prices had appreciated dramatically. The highest priced condominium sale during the decade was $2.375 million for a Stonegate townhome on Minaret Road adjacent to the Sierra Star Golf Course in 2007.
The highest priced single family home sale was for a 5,300 square foot luxury home in Juniper Ridge for $4.95 million that closed during 2005.
In looking at the preliminary numbers for 2009, the year was OK. There were 300 condominium sales with a medium sales price of $347,000.
Included in those sales were three sales of more than $1 million with the high sales price being for an Altis townhome at $1.6 million.
Additionally, there were 88 single family homes with a median sales price of $609,000. There were 13 transactions more than $1 million and the high sales price was $2.950 million for a home in Starwood.
So at this time it appears that we peaked in 2005/2006 and bottomed in 2008/2009.
Nearly 20 percent of the existing condominium market was built during the last 10 years. These 1,000 plus condominiums are clustered in four primary areas; The Village, Eagle Lodge, Snowcreek and Sierra Star.
More than 400 condominiums were constructed in The Village area including the Westin Monache, Grand Sierra Lodge, White Mountain Lodge and Lincoln House.
Additionally, in this area Mammoth Mountain built the Mountain Center with The Village Gondola to Canyon Lodge. And the old Pioneer Market was replaced with an 80/50 Private Residence Club.
The second area of growth was around the Eagle Lodge area.
Mammoth Mountain has plans to completely build out this ski portal with underground parking, ski school and day lodge.
More than 200 condominiums were built in this area, which included Juniper Crest, The Cabins, Eagle Run, Mammoth Green and Sunstone.
Closer to the urban limits of Town are the Snowcreek developments. Between The Lodges and Creek House 118 upscale townhomes were built. And adjacent to the Sierra Star Golf Course there were nearly 70 condominiums built; Solstice, Stonegate and Woodwinds.
In retrospect, I look at the last decade of the Mammoth Lakes real estate market as the “grass” getting just a little too long in 2005/2006 and now that it has had a “haircut” the Green Shoots are starting to sprout.
Of course, this is only a local prospective. All areas in the country don’t decline on the same schedule just as all areas will not recover on the same schedule. In the end, Mammoth is a Town of only four square miles that is the number one playground for the more than 20 million folks from Southern California who want a mountain experience.
Wishing everyone a prosperous New Year filled with many happy days enjoying the great outdoors!
The opinions expressed in this column are strictly those of Madeleine “Mickey” Brown. She is the founder of The Resort Property Experts ® based in Mammoth Lakes. Mickey is a licensed California Real Estate Broker and Certified Public Accountant. She can be reached at
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or 760-914-0199.
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Last Updated ( Friday, 08 January 2010 )
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At Home In The Sierra by Robin Stater |
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Thursday, 14 May 2009 |
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Leaving 2009 to greet 2010
What have we learned in 2009 that we can take forward into this new decade?
I think the most important lesson with our lives and with our homes is that less is more.
In decorating as in consumerism, while experiencing this recession, we’ve been taught (again) that it’s quality over quantity. It’s made our homes, families and our friendships much more important to us.
Gone is the crazy running from place to place seeing and doing everything and spending like there is no tomorrow.
Now we are back to the “nesting” style that really nurtures our hearts and our homes.
I’ve seen many more families new to Mammoth buying second homes and getting ready to share the next phase of their lives with their families and friends.
It is wonderful to meet new clients who are now buying their “first” second home in Mammoth. Thank goodness for the reduced prices in the real estate market that has brought a whole new wave of homeowners to town.
I’m thankful for all of our new friends and homeowners who now have a beautiful retreat in the Sierra!
The decor for these new homes is simpler. We reduced the amount of furnishings and focused on a clean and uncluttered look. This style of clean and streamlined design became popular several years ago, but now is even more prevalent as homeowners want to simplify their lifestyle.
We have provided our new clients with new lines of furniture that we have sourced, including simple sturdy case-goods in rugged solid wood that they can use for the next decade without worry of it weakening with use.
The colors are brighter in upholstery, with luxurious chenille and heavy textures that invite long, cozy and relaxing time spent together with friends and family.
The mountain style of decor is heavier than what you might see at the beach or in the city, but the trend for simplifying covers all styles.
We are seeing brighter colors again as people want to “enliven” their living spaces. Reds, rust, orange, turquoise, white are all colors that are popping off the pages of the home fashion magazines. Some of these colors might be a bit much for everyday life, but we can incorporate the ‘ideas’ we see in a livable fashion with throw pillows, bedspreads, an accent wall or some special accessories that bring a “punch” of life to any room.
Even a bowl of oranges or lemons can bring a ‘fresh” energy to a somber dining table or kitchen counter. Think color and something natural.
The green movement of the past decade brings us back to our roots as well – it is a bit like revisiting the 1970s when I started thinking about living off the land and eating organic! Hurray that the country has finally gotten the message about sustainable living and eating healthy. The movement for recycling and “green products” is here and it’s a start to a process that, I hope, will not just be a passing fad.
We need to educate our children about the necessity of creating better products that we can all use and enjoy in the future.
When it comes to product lines that are made from recycled wood and reclaimed lumber, I wonder if getting it all the way to Mammoth from wherever it comes from is actually improving the “carbon footprint,’ but we can only try to be conscientious about our choices and how we use the resources that we have been given the privilege to share.
I wish all of you a healthy and happy 2010 and hope that you enjoy all you’ve been given and all your blessings!
Robin Stater is the owner/designer of Sierra Design Studio, Inc. Established 1988 in Mammoth Lakes, Calif. The professional design team specializes in mountain home furnishings, Interior Design and remodeling homes in the Sierra. Visit www.sierradesignstudio.com or call (760) 937-4122 for more information.
The views expressed are those of the author and do not necessarily represent policies and opinions of the staff or owners of the Mammoth Times. Reader response is encouraged.
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Last Updated ( Friday, 08 January 2010 )
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Money Talks by Doug Magit |
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Thursday, 14 May 2009 |
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Looking back and then forward
As I reflect on the past year, I reviewed my 2008 Year in Review and how the mortgage market had survived the financial collapse and meltdown of 2008. I had dubbed 2009 the Year of Hope with all the government intervention and injection of capital into the economy that was being promised. I also discussed the zig-zag theory (to zig when everyone else is zagging) of acting when everyone else is being so pessimistic, that this could be a time of opportunity. I also talked about those of you with ARM loans that would be converting last year may be pleasantly surprised as the Fed keeps rates low, which they did.
The Hot Topics for 2009
Credit scores are king
Your credit rating has become paramount in obtaining new credit and maintaining existing credit availability. With credit standards tightening, it has become more critical to maintain a high credit score. This can be accomplished by keeping your outstanding balances at less than 50 percent if not 30 percent of your available credit along with paying all your bills on time, of course.
Unfortunately, it appears if you have a credit card and utilize most of the available credit this will lower your score even if you pay the balance in full each month.
Refi Boom
In the spring, the government’s promise of buying mortgages came to fruition and drove home mortgage interest rates from the mid-five percent range to below five percent for most of the spring, summer and fall.
This gave many borrowers the opportunity to lower their payments. Others however, were frustrated by the tighter lending standards and low appraisal values, thus being unable to refinance.
Modifications
The HARP and HAMP programs go live. HARP, Homeowner Affordable Refinance Program, allows qualified borrowers to refinance homes that have lost equity or are slightly underwater. This program has helped many homeowners refinance their home and obtain a lower rate, who otherwise, would not have been able to (refinance) simply based on the value of their home (all other things being equal).
The HAMP program is designed to assist borrowers in modifying their home loan. There have been reports this program has not been as successful as the government had intended. In recent months, they (the government) have been trying to apply more pressure on banks to do more.
However, there is still the issue of who “owns” the mortgage, and will all parties agree to a Mod and will this really help the homeowner or simply delay the inevitable (foreclosure).
More disclosures and red tape
The implementation of HERA/HOEPA (Home Economic Recovery Act and Homeowners Equity Protection Act) added potential delays in obtaining a home loan by allowing a borrower more time to review their closing costs.
The HVCC, (Home Value Code of Conduct) required all lenders to order their appraisals though an independent third party. This is designed to remove any outside or undue influence on appraisers and has also increased the cost of obtaining an appraisal.
Beginning in January 2010 the new RESPA rules take effect, which will standardize the Good Faith Estimates and probably cause more confusion than simplification as intended.
Looking forward
As an eternal optimist, I have been saying every day we move forward we are closer to the end of this cycle. It looks like we still have a little ways to go, but we are getting closer. Unlike stocks, real estate values will not go to zero and you can always rent out your property. Recent reports show price stabilization and slight increases in some areas. Locally, we have seen bank owned properties; short sales and aggressively priced properties sell quickly. As the economy improves, the government will begin removing the assistance they have provided. In regards to home mortgages, we can expect mortgage rates to rise as they stop buying mortgages. However, if the economy experiences any setbacks (higher unemployment, more foreclosures), this could cause the Fed to add more assistance and push rates down again. Stay tuned …
Wishing you and your families a Happy, Healthy and Prosperous New Year!
Doug Magit is a home mortgage consultant at Wells Fargo Home Mortgage, serving his clients nationwide for over 19 years. He can be reached locally at 760-924-2270 or toll-free nationwide at 800-520-2050. email:
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Information in this report is the personal view of writer and does not necessarily reflect the views of Wells Fargo Home Mortgage or the Mammoth Times. It is for your personal use.
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Last Updated ( Friday, 08 January 2010 )
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