Mammoth Real Estate Rentals Machines

That darn Internet, it is disrupting lives all around the world. It isn’t exactly causing mass rioting or toppling dictators here in Mammoth, but it certainly is changing many facets of Mammoth real estate. It is changing the demand, usage, the “visioning” by prospective buyers, and sprouting new economies and changing old ones. And stuck in the middle is the Town of Mammoth Lakes, a government entity like all government entities that is looking for increased revenue. Conversely, the consuming public is downright trying to evade taxes (imagine that). I’ve talked about this in the past, but the opposing forces are growing more apart every day, but changes may be in the offing. And increasingly it has become more and more about “heads in beds” in an upscale home near you.

Mammoth Lakes

A prevalent theme for many of these prospective buyers seems be “we can rent this.” They seem quite convinced of that. It is clearly driving purchases. But this a rather interesting phenomenon—-––people who want to buy a million$ plus home and let other people rent it while they’re not using it. And how do they know they can rent it? They know first hand. The renters are becoming purchasers. And they have a bunch of “friends” who will rent from them, especially if their place is nice, and fun to hang out at. What also makes this so noteworthy is that these new transient landlords aren’t even relying on the now-blasé resources like VRBO and VacationRentals.com. They have a growing number of friends, and if you’re not a friend, you’re not invited. My hunch tells me friends don’t pay bed tax either. The underlying theme is really nothing new here in Mammoth, but some of the methodology has. But it is definitely happening more and more in the high-end home market. People love renting these homes. It almost seems like renting (whether you are the landlord or the tenant) a luxury home in Mammoth rates has become a new “cool’ underground activity. Being in the Village might be the “in” thing for some, but renting a really nice home is the real luxury. Maybe there’s a strong market for Black Passes after all. And now it is driving sales in the high-end home market. Meanwhile, more and more existing owners who have never previously rented are moving into some rental activity to help offset overall costs, many with a “why not everybody else is?” attitude.

The VRBO/Vactionrentals.com method of doing business has evolved too. Or devolved in some eyes. It has become a wheeler-dealer “Let’s Make A Deal” place for rental transactions. That is, if it’s not the holidays. This is still the dominant realm of condominiums. Renters want to negotiate everything from rental rates, to cleaning costs, to not paying bed tax (13%, for what?). But the next generation/iteration of transient landlords is moving away from the traditional VRBO/Craigslist model too. Most of it is still about Internet marketing, but also personal relationships, “close friends,” etc. In some ways this has come full circle: in the 70’s and 80’s Southern California fireman already had this system well in place, their association/trade magazines were full of Mammoth condos for rent. The condos were owned by firemen and predominantly rented by firemen, and there were plenty of “deals” and trade-out cut along the way (and of course nobody paid bed taxes).

Mammoth Vacation

 

Real Estate mammoth Vocation in California CA

In Mammoth, the one thing I watch is the Ski Area, the economic driver of the community. The Town (government) can bumble and fumble down the road and have all of its calamities and bad press, but as long as it keeps the roads plowed (which they are stellar at) and keep the barbarians from running amok, then everything seems to pretty much even out.

 

But the Ski Area is something quite different. I often laugh at people, who don’t ski or ride the Mountain and think they are in touch with what’s going on in town. They’re not. A perspective going back at least a few decades helps to the As part of my job, I consume as much information about real estate as my brain can process. Obviously, some of the information is about economics and general trends in the market, or what is happening in the state or nationally that will impact the market. And I certainly don’t rely on the National Association of Realtors to guide my thought process.

We all know the MVP keeps increasing in price, but the demand appears fairly consistent. Across the board, these season pass programs look like the life-blood of ski resorts today. Are the increased revenues coming from MVPs just spending more on beer, demos and lessons? I have a hunch that one of the values of re-opening the MVP program to new members is that the newer MVPers are the ones spending the most highly profitable discretionary dollars on the Mountain.

Many people forget that the Ski Area is also a large “front desk” hotel operator/property manager in Mammoth. They can thank the Intrawest model for that. The rental numbers generated out of the Village and Juniper (Eagle) condo hotel units and the Mammoth Mountain Inn have to be impressive. It has taken awhile, but it sure seems they are getting it figured out, and I’m in the condo hotel properties all the time on business.

But is this where all these increased revenues are coming from? Is it more of the discretionary dollars being spent by real tourists who come on packaged deals? Or maybe the Black Pass holders really are big spenders? Or maybe it is the table service at Hyde Lounge generating this extra revenue

How Could There Bee a Mammoth Vacation

http://www.mammothdirect.com/index.aspx

Conversely, the statistical data has some segments of the market dropping another 10 to 20% in the last year. The various segments in the market have very different supply and demand characteristics. Some segments of the market have lots of “cookie cutter” supply, and some don’t. Some condo projects don’t turn over at all, or very little. Some of the properties built and sold in the peak of the market have devalued greater than others. Some sold properties were foreclosures with more aggressive (price reducing) investor/sellers.

The higher end of the single-family market has devalued more than the lower end. Many high-end homes were built on speculation and ended up distressed and/or foreclosed on. And forget appraisals; if the appraiser isn’t also active in real estate sales, or communicating daily with the agents, then they are out of touch. So, the market is all over the place.

As I’ve said many times in the past few years, we’ll only see the bottom in the rearview mirror. And anyone who drives a car knows if you spend too much time looking in the rearview mirror you’re likely to miss something very important in front of you.

Calling bottoms is fashionable for some, but it is also risky if you have anything to lose. People who call bottoms usually have very little to lose. People (like buyers and sellers) who are betting (or not betting) their dollars on bottoms have far more to lose, or gain. And more and more people “just want to get on with it.”

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The Frustrated Buyers post was very much written from personal and professional experience. As humans we all have events etched in our minds that if we could return to them, and take advantage of them based on what we know now, we would do things differently. (Yes, I’m in the middle of a mid-life crisis.)

The Mammoth real estate market is full of them. Many buyers are incessantly perusing the Internet for new Mammoth listings that are equivalent to some property they almost, or did, make an offer on and lost out. Most times they offered too little, sometimes they acted too slowly. Regardless, today they can’t find a replacement, or the similar property is priced significantly higher. But does that create a bottom?

Mammoth Real Estate in California

The Frustrated Buyers post was very much written from personal and professional experience. As humans we all have events etched in our minds that if we could return to them, and take advantage of them based on what we know now, we would do things differently (yes, I’m in the middle of a mid-life crisis).

The Mammoth real estate market is full of them. Many buyers are incessantly perusing the Internet for new Mammoth listings that are equivalent to some property they almost, or did, make an offer on and lost out. Most times they offered too little, sometimes they acted too slowly. Regardless, today they can’t find a replacement, or the similar property is priced significantly higher. But does that create a bottom. Conversely, the statistical data has some segments of the market dropping another 10 to 20% in the last year. The various segments in the market have very different supply and demand characteristics.

Some segments of the market have lots of “cookie cutter” supply, and some don’t. Some condo projects don’t turn over at all, or very little. Some of the properties built and sold in the peak of the market have devalued greater than others. Some sold properties were foreclosures with more aggressive (price reducing) investor/sellers. The higher end of the single-family market has devalued more than the lower end. Many high-end homes were built on speculation and ended up distressed and/or foreclosed on. And forget appraisals, if the appraiser isn’t also active in real estate sales, or communicating daily with the agents, then they are out of touch.

So the market is all over the place.As part of my job I consume as much information about real estate as my brain can process. Obviously, some of the information is about economics and general trends in the market, or what is happening in the state or nationally that will impact the market. And I certainly don’t rely on the National Association of Realtors to guide my thought process. In Mammoth area activities the one thing I watch is the Ski Area.

They are the economic driver of the community. The Town can bumble and fumble down the road and have all of its calamities and bad press, but as long as they keep the roads plowed (which they are stellar at) and keep the barbarians from running a muck, then everything seems to just even out. But the Ski Area is something quite different. I often laugh at people who don’t ski or ride the Mountain who think they are in touch with what’s going on in town. They really don’t. A perspective going back at few decades helps tool.

We can only hope that expenses haven’t increased more than revenues, but it doesn’t feel like it. It would be very interesting to see inside those numbers, where the increased revenue is coming from. We all know the MVP keeps increasing in price, but the demand rates appears fairly consistent. Across the board, these season pass programs look like the life-blood of ski resorts today. Or are the increased revenues coming from MVP just spending more on beer, demos and lessons? I have a hunch that one of the values of re-opening the MVP program to new members is that the newer Mopers are the ones spending the most highly profitable discretionary dollars on the Mountain.

Am I paranoid? One of my favorite movie scenes is in Beautiful Mind where the Russell Crow character stops a student exiting his class to validate he is in fact having a conversation with a real human versus an illusion. Along those lines, I need a reality check regarding my deep pessimism over our economy which has me questioning the solvency of Mammoth. First of all, let me make it clear I have absolutely no facts or even rumors of any kind to support such crazy talk…in fact, I find the mountain running as well as it always has. Nevertheless, I just renewed my MVP pass and found they are now increasing the cash bonus to 25% from 20%…WOW!! While my first thought was Yippee!.my second thought was why are they so hard up for cash?? Heck, I can get a better usury rate from Vito at the local deli. Do they have a balloon payment due? Or worse yet are they following the short seller strategy to collect as much cash as possible before giving the property back to Comrade Sam, oops I mean the bank? Paul, I wouldn’t fault you for not publishing this

Mammoth Mountain Ski Report and Mammoth Ski Club

This morning the winds are up, but not too bad. The National Weather Service forecasts for Mammoth Lakes weather a High of 32, and a Low of 10 F. In town the winds are out of the SE at 20 with gusts to 39. The wind guage on chair 1 shows an average wind speed of 45 mph with gusts to 70 mph.

Usually this would be a day where only the lower chairs are running. But I just checked the web cams, and they are running the lifts all the way to the top. In the webcam view, the wind did not look that strong even at the top of Cornice.

Today is the last Holiday vacation day rates for most people, so Mammoth Mountain Ski Area will be virtually empty this next week. If you can come up, be sure to take photos of your runs, and send them to me so I can post them on this blog.

 

Lots has been going on behind the scenes with Mammoth Ski Club. Constructing the website and getting it to perform as programmed has been challenging, but most of the bugs are worked out now. Mammoth Ski Club now has the most powerful website, as far as capabilities, for the Mammoth Lakes and Mammoth Mountain 

Starting Mammoth Ski Club has been challenging. Every day I work on making the pieces of the puzzle fit, and it is an ongoing process. Today I am going to post this blog, then go and enjoy the fabulous skiing at Mammoth Mountain.   

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Mammoth Direct Reservation

Mammoth Ski & Racquet Club features beautiful, fully equipped rental condominiums nestled in the forest, offering scenic mountain views. Walk to Canyon Lodge (formerly Warming Hut II) and chairs 7, 8, 16 and 17, or take a short drive to some of the best cross-country skiing in the Sierra.  Recreation room, laundry facilities, 2 spas, summer pool. Garge parking. Onsite management.  No need for additional stops to pickup keys. To your door towel/supply service.

Mammoth's finest condominium rentals. Walk to Mammoth Mountain (Canyon Lodge) or take a short drive to the Sierra's best trout fishing, mountain biking, hiking, or golf. » Check out lastminutemammoth.com for last minute reservations.  Excludes holiday dates. Room Sizes & Rates » Visa/MasterCard/Personal Checks/Money orders accepted (Some restrictions apply to credit card use) » We offer limited units that allow 1 dog. Pet units can be searched with our online system HERE.  2011 Summer Rental Rates (Rates are subject to change without notice)  4/29/11-11/17/11 Check availability online now! Size Nightly 5 Night Special 6 Night Special 7 Night Special Studio/Loft, 2 Baths 110.00 465.00 528.00 580.00 1 Bedroom, 2 Baths 115.00 485.00 552.00 605.00 1 Bedroom/Loft, 2 Baths 135.00 575.00 648.00 710.00 2 Bedroom, 2 Baths 145.00 615.00 696.00 760.00 2 Bedroom/Loft, 2.5 Baths 187.00 792.00 900.00 979.00 Deluxe/Premium Rental Units* 4-8 Add 10-20% Add 10-20% Add 10-20%   » Some Pet units are available at $25 extra per night. » Add $35 booking fee » 13% Town of Mammoth Lakes tax. » Several "Deluxe/Premium" units are priced 10%-20% higher 2010/2011  Winter Rental Rates Rates are subject to change without notice. Please read our reservation policies here. Check availability online now!  Other restrictions apply, please read the reservation policies above.   Size Sleeps Nightly Mid-Week Nightly Weekend 7 Nights Non Holiday Holiday Nightly 1     2 Studio/Loft, 2 Baths 4 128.00 158.00 950.00 245-350  1 Bedroom, 2 Baths 4 136.00 175.00 1015.00 250-360  1 Bedroom/Loft, 2 Baths 6 145.00 200.00 1105.00 285-410 2 Bedroom, 2 Baths 6 153.00 209.00 1170.00 310-430  2 Bedroom/Loft, 2 1/2 Baths 8 162.00 268.00 1315.00 375-485 Deluxe/Premium Rental Units* 4-8 Add 10-20% Add 10-20% Add 10-20% Add 10-20%

Welcome to the Mammoth Direct Reservaion

Perfectly located condominium rentals in Mammoth Lakes.  Nestled in the forest.  Walk to Mammoth Mountain (Canyon Lodge) or take a short drive to the Sierra's best trout fishing, hiking, or golf.   Tennis courts and recreation room onsite. Mountain bike from your condo. Room Sizes & Rates » Visa/MasterCard/Personal Checks/Money orders accepted (Some restrictions apply to credit card use) » We offer limited units that allow 1 dog. Pet units can be searched with our online system HERE. Holidays Rates » There will be a charge of $250 for stays shorter than the below minimums. » Holiday Cancellation fee = 10% or $150 whichever is higher. » Holiday availability can be checked online, but please call us to book.  Rates may not calculate correctly. » Thanksgiving 11/24- 11/27  @ regular winter rates. » Christmas 12/17-12/25 - 3 night min. @ holiday 1 rate (No check ins or outs on 12/25: Office is closed) » Christmas 12/26-1/2- 4 night min.@ holiday 2 rate  (No check ins or outs on 12/25: Office is closed)     » AAA rates do not apply to 5-7 night specials or holidays