Home / Blog / Mono County Market Update – Spring 2017

Mono County Market Update – Spring 2017

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CA Historical Sales - Mammoth Market Update Blog

If you’ve been following real estate in Mammoth Lakes and the surrounding areas for the last two years, you’ve probably noticed that the market has been getting progressively more competitive and home and condominium prices have been inching upwards.  Competition in the under-$500,000 segment of the market is fierce, with multiple offers on nearly every property pushing sales prices up above asking.  The median home values, compared from April 2016 to April 2017, are a bit skewed because of several very high-end home sales, but show a significant increase year to year.  Across California, the rest of the state is also seeing a rise in prices.  April’s statewide median home price was $536,750, up 3.7 percent from March and up 5.4 percent from April 2016. “California’s median home price has been on an upward trend on an annual basis since March 2012 and is now at the highest in nearly 10 years,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “The yearly price gains will most likely persist through the remainder of the home-buying season, further exacerbating an already-low housing affordability situation. This could have an adverse effect on home sales in the upcoming months, especially since interest rates are expected to rise in the second half of the year.”

In contrast to the rising sales prices, both across the state and locally we have seen a decline in the number of sales.  In the Eastern Sierra, this is primarily due to a lack of inventory as properties are spending far, far fewer days on the market before going under contract, but statewide it is speculated that the drop in sales due not only to a drop in inventory, but is being affected by rising interest rates as well.  Existing, single-family home sales totaled 406,300 in April on a seasonally adjusted annualized rate, down 2.4 percent from March and down 1.7 percent from April 2016 across the state.  In Mono County, sales were steady from March to April 2017, but down 9% from the previous April.  “With pending home sales slowing over the past three months, April’s sales decline was not a surprise,” said C.A.R. President Geoff McIntosh. “Some sales that took place in the first quarter were likely pulled forward as homebuyers took advantage of the favorable interest rate environment and decided to purchase now before rates increase. Moving forward, the housing market may temper further as interest rates inch up and the supply of available homes for sale tightens.”

So what does this mean for you, the prospective buyer in the Mammoth Lakes area?  Well, if you are looking in the under $500,00 price range, you can expect to be competing with several other offers, so get ready to lead with your absolute strongest offer!  And with inventory declining, you will likely see fewer options to purchase as the summer buying season moves along.

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