Mammoth Lakes Real Estate on Upswing : Buyer Interest in High Sierra Dwellings Increases as Construction Comes to Halt

A diminishing inventory of homes for sale, an absence of new construction and renewed buyer interest has stimulated the real estate market at this eastern Sierra resort.

The multiple book shows 300 condominiums currently listed, well below normal for the area. With new residential construction at a virtual standstill, only 20 new units were available to buyers last week.

“The market is changing dramatically,” said David Buckman, vice president of Mammoth Properties. “Six months to a year from now there will be a shortage of units for sale, with little or nothing planned for construction.”

The town is two years away from residential construction of any size, Buckman believes. As a result, “six months from now the seller will be in the driver’s seat,” he said. Historically, the resort has absorbed 200 units a year.

Uncertainty over federal tax reform proposals has not discouraged sales, brokers say, and rentals are far ahead of last year. Overall, prices range from about $45,000 to $200,000, a considerable drop from recent years. An exception is The Bridges, a condominium development where prices range from $250,000 to $400,000.

“Mammoth is very healthy now,” said Bill Taylor, broker-partner at Mammoth Sierra Properties. “The downswing has leveled and buyers are back, feeling comfortable about purchasing in Mammoth.”

He said his firm enjoyed a very good 1985 and he sees a continuation of prosperity in 1986. “People are not worried about tax write-offs, and sales are brisk.”

“It’s a really upbeat market,” said Chuck Tomajko, Mammoth Real Estate Co. broker. “Prices are down and interest rates are between 11% and 12%.”

Visitor rentals have been doing well, expecially during holiday periods, he said. “For the Christmas holidays, the town was completely booked a month in advance.”

At the same time, rentals for permanent residents are virtually unavailable.

Plans for Mammoth Lakes’ second ski area are “moving along very well,” according to Gail Frampton, vice president of Dempsey Construction Corp., which is a partner with architect Allan O’Connor in a $536-million venture. A feasibility study for the Snowcreek Ski Area was expected to be finished this weekend for review by the U.S. Forest Service.

The study covers avalanches, geology, water resources, hydrology, anthropology, wildlife, traffic, economics and a skier market analysis. Following review and expected approval of the feasibility study (taking two to three weeks) it is anticipated that the Forest Service will authorize an environmental impact study that should require six to eight months to complete.

Approval of the project is expected this year, with construction to start in 1987, according to Frampton. “If everything goes smoothly, the area could open in the winter of 1987-88.”

Snowcreek Village is to include a golf course, clubhouse, condominiums, hotels, lodges, guest houses, restaurants and a convention facility. Already in operation is the $5-million Snowcreek Athletic Club, and several phases of low-density condominiums have been completed, as well.

There are 10 chairlifts in current plans, five of which will be the recently introduced quad (four-passenger) detachables. They will operate like gondolas, slowed or stopped for loading and unloading and running faster than standard chairlifts between stations.

The longest lift, a little more than two miles in length, will run in two legs from the village to the top of the mountain.

The Snowcreek Ski Area, located just south of Mammoth Mountain, would cover 350 acres, tieing in with Snowcreek Village with its housing and other facilities.

In the central part of town, Sierra Centre Mall, making a strong recovery after bankruptcy and subsequent reopening in March, 1985, has 19 retail tenants, including two restaurants, Shogun and The Terrace Restaurant and Bar. There were only six retail vacancies as of last week, according to Mammoth Sierra Properties’ Taylor, who is also manager of the shopping center, located at Old Mammoth Road and Meridian Boulevard.

A hotel may occupy the center’s third floor, depending on results of a current feasibility study. It would have 28 rooms, a conference center and spas, according to Taylor.

Southern California Savings of Beverly Hills took over ownership of the mall, formerly known as Mammoth Sierra Center, from Affa Construction Corp.

The Mammoth Mountain Ski Area invested more than $10 million last summer on new lifts, on increasing lift capacity, on opening new runs, on a new food facility and adding restrooms. Three quad lifts have been installed to improve access to the mountain and to open new skiing terrain.

Chair 24 parallels Chair 15, tripling the uphill capacity of the Chair 15 base area. Chair 25 runs up the southeast side of Lincoln Mountain, providing a number of runs, as well as access to Chairs 2, 4, 5 and 18 and Warming Lodge 2.

The third quad replaces Chair 2, doubling the uphill capacity of that base area. A food facility with a sun deck and restrooms has been opened on the backside of the mountain at Chairs 13 and 14.

A ticket sales facility and restrooms have been provided near the bottom of Chairs 4 and 20.

“The new improvements have helped to spread skiers out and have helped to shorten waits on weekends and holidays in congested areas,” said Evan Russell, marketing director. Contrary to statements by others, the Mammoth Mountain Ski Area will continue to develop and expand, with no plans to reach capacity at any date in the near future, Russell said.

In the past five years more than $35 million has been spent by the ski area on mountain improvements, including buildings, lifts, trails and landscaping, according to Pam Murphy, public relations manager. “During that period we have increased the uphill capacity from 29,000 to 42,000 skiers an hour,” she said.

The Mammoth Lakes Resort Assn., created in March, 1985, is being credited with bringing many first-time visitors to Mammoth Lakes. Major goals of the association are to increase midweek winter business and attract summer visitors, according to Ron Stevens, president and chief executive officer.

“We are trying to change the conception of Mammoth from just a ski resort to a year-around vacation resort,” Stevens said. Yosemite National Park, which turned away 125,000 people seeking accommodations last year, could be the source of new summer visitors to Mammoth.

Stevens said the association is discussing with Yosemite innkeepers the possibility of a referral service informing callers about alternative accommodations at Mammoth Lakes. “If we got 10% of the people who are turned away from Yosemite, it could bring 12,000 new visitors to Mammoth.

“If people learn we have 54 restaurants, 38,000 beds and beautiful scenery, they may be sold on Mammoth.” Yosemite, while only 50 miles away as the crow flies, is about a 2 1/2-hour drive, except during the winter months when the high mountain passes are closed.

Stevens cited the need for improvements at the airport and the construction of convention facilities as important goals of the association.