It was a La Nina kind of year. Turbulent. Unpredictable. Disappointing. Dry. The stock market ended within a few points of where it began. The economy came off life support but stayed in the ICU. The ranks of the unemployed remained alarmingly swollen. In real estate, the pace of foreclosures and short sales continued unabated while values slid further south.
In Mammoth 303 condominiums changed hands. Nearly half of them were distressed sales: auctioned, owned by banks or sold short by lenders. That contrasts with 375 sales, in 2010 in which 38% were distressed. The median price of a condo sold in 2011 was $242,000 off 13.5% from 2010's median of $280,000.
Home sales remained nearly steady at 70 transactions contrasting with 72 sold in 2010. The median price eased 9.2% to $567,500 from $625,000 in 2010. 29% of home sales were bank owned or short sales in 2011 compared with 39% in 2010.
Downward price pressure is not coming from a bloated inventory. Currently there are just 57 homes and 160 condos listed for sale in Mammoth. Well below historical norms. Rather values are being weighed down by distressed properties hitting the market at clearance prices.
On an upbeat note, the Fed's January 11, Beige Book had an opptimistic report on commercial real estate, leading commentator Phil Davis to exclaim, "It is very possible we are finally seeing a bottom." He went on to say that the "Fed and Administration are now looking to concentrate their firepower on residential real estate." Calling it "the last major drag on the economy."
Interest rates on conforming 30 year fixed rate loans dipped below 4 % last week, to a new 40 year low.
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