The below infographic provided courtesy of the California Association of Realtors provides a look into what motivates a “first-time home buyers” to finally throw in the towel on renting and secure a place of their own. This same infographic compares those top four motivating factors and compares them against what is more or less important to repeat buyers.
The above percentages are just a general focus on California buyers as a whole. And it is no secret that over half of the Mammoth Lakes homeowners are made up of out-of-towners who have primarily purchased in Mammoth as part of a lifestyle decision to own a home or condominium in their favorite nearby resort mountain town. But that’s not to say that Mammoth doesn’t have a significant amount of locals who own their home. However, with that also comes a significant amount of locals who are still renting.
We all know the downsides of renting. Well why doesn’t everyone just own their home then? If it was only that easy, right?! The rental rates in Mammoth, and just CA for that matter, have remaining on the high side and seem to be still increasing. So what that equates to for a low-income or middleclass families or individuals is a whole lot of their monthly income going towards just rent and utilities. Then what’s left has to pay for food, gas, insurances, cell phones, and maybe just that weekend cocktail that is much deserved after a long week of working. But then at the end of the month what’s left? For many the answer is unfortunately very little and of the few hundred dollars they are able to tuck away in savings, there always seems to be something in life that comes along and has a need to tap into those funds.
So where does this lead? Well it leads to an unfortunate cycle of being stuck as a renter without an effective way to save the necessary money needed for a down payment towards a home, which is typically 20-25% in mammoth. Yes, there are FHA loans out there for first-time home buyers where only 3-5% down is needed, but the price point that many Mammoth locals are boxed into for their first home purchase puts them looking at condos and townhomes. What is concerning about this is that most of the condominium projects in Mammoth Lakes do not qualify for FHA mortgage loans, putting those buyers back to a situation where that 20% is needed. And if you are a buyer looking to buy just a $200,000 condo (which unfortunately doesn’t get you much), that means you need at least $40,000 saved which could take some folks a decade or more.
With that said, let me please shed a bit of optimism on the subject. Before you Mammoth local first-time home buyers see this as a dead-end situation, I encourage you to sit down and do a FREE consultation with me. I have represented dozens and dozens of people in your same situation over the last decade plus of selling homes in Mammoth. I have a business degree in Finance and am a Certified Debt Arbitrator. I am more than happy to discuss your housing needs, analyze your finances, refer you to local mortgage specialists, and see where we can identify the right solution to help you take the next step towards home ownership!
Just call me at 800-921-6520 or send an email to Eric@ResortPropertyRealty.com.
Resort Property Realty, Inc.
Broker / Owner
CA Lic #01343386