Hi Friends. 2018 is underway and looks to be another stellar year for the selling and buying real estate in Mammoth & the surrounding areas. After very strong price appreciation in 2017 we are expecting another healthy year with prices continuing to climb higher. There are numerous positive factors that will likely continue to drive the market higher which we will discuss below.
Strong Economy– Both the California & national economy are arguably their strongest in the last 15 years. Unemployment is down to 4.1%, the lowest since February 2001.The economy has been growing at over 3% for the first time since 2005. US manufacturing is also the strongest for factories since 2004.
Record home prices for Coastal California Real Estate is driving Mammoth Real Estate- Record prices for homeowners across coastal California where many of the Mammoth area buyers live is fueling the recovery of Mammoth Real Estate Prices. Many buyers are taking money from their primary residence and paying cash or using that money as a down payment to purchase a property in Mammoth.
Mortgage Rates– Are expected to remain favorable in 2018 although they may increase slightly as the economy continues to grow. Currently mortgage rates are near 4%.
Aspen Purchase– The new ownership group is expected to make significant investments in Mammoth Mountain and further raise the bar for the Mammoth experience. Many buyers in Mammoth have a passion for skiing/snowboarding and this should help the demand to own in Mammoth.
Stock Market– The Dow Jones Industrial Average saw a significant gain of 25% in 2017. The NASDAQ composite rose 28% in 2017 giving many buyers in Mammoth more resources and financial confidence to buy in or around Mammoth.
New Construction– New construction is on the rise in Mammoth, Crowley & Swall Meadows. With attractively priced lots enticing some buyers to build rather than buy an exisiting home. We are likely to see land values continue to climb in 2018. We are also starting to see an increase in commercial development and construction in Mammoth.
Snow & Weather– In December Mammoth Mountain had the most acres open for skiing of any resort in the country coupled with good snow conditions thanks to a nice storm in November. Aspen Snowmass by comparison in December only had 10% of their runs open in December. December was mostly dry for Mammoth and now the weather pattern is finally changing in January to bring more storms and snow. If we do not get massive snowfall in January & February it may create favorable conditions for those considering selling in the next few months as properties will show much better compared to last winter and spring when they were buried in snow. There are also is a shortage of properties for sale in Mammoth further fueling buyer demand.
Tax Changes- The new tax changes make it so home equity lines are no longer deductible in 2018. Those with home equity lines should consider replacing them with a 1st which still could be deductible. Mortgage interest deduction was reduced to $750,000 from $1,000,000 previously. This limit is for 1st and 2nd homes. Investment properties may still deduct their mortgage and property taxes. Investment properties may still deduct their mortgage interest and property taxes and therefore some buyers may consider using their property as an investment property/nightly rental instead of a 2nd home. If you would like a recommendation for a good CPA please let us know. The original tax plan called for eliminating the deduction of 2nd homes, luckily that did not happen which would of also negatively impacted large boat and RV sales.
Much different market than 2006-2007- The 2006-2007 market and subsequent downturn was largely fueled by sub prime loans given to borrowers that could not afford them. This included many purchases in Mammoth during that time which later caused the market to drop significantly when they were foreclosed on. Currently lending standards are tight making sure borrowers actually qualify for the properties they are buying. In this current market many buyers are purchasing with cash and the risk of a downturn anytime soon is unlikely. Those purchasing with loans generally have excellent credit and income qualifications.
For Buyers- Although prices have risen the last few years there are still good opportunities for buyers if they look in the right places. Our team can help you find the best deals available in today’s complex market. Now may also be a good time if you were considering selling your current Mammoth property to upgrade or downsize. You can view all homes currently for sale in Mammoth by clicking here.
Bottom Line– 2018 looks to be a strong year for those thinking of selling property in Mammoth & nearby areas. Call the Millman Team for a professional market analysis of your property’s increasing value: 760-914-4411 or you can get an instant online value here: https://www.homesmammothlakes.com/home-valuation/