Market Report

Nov 2015-Telluride Real Estate Market Conditions

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CURRENT TELLURIDE REAL ESTATE MARKET CONDITIONS Updated November 2015 The 2014 Telluride Real Estate Market outdid each of the previous six years and was the best Real Estate sales year since Pre-Recession. 2015 has sustained this sizzling pace through the first half of the year, but has dipped slightly as we prepare for the upcoming 2015-16 ski season. The town of Telluride activity is still robust, but the overall sales volume in both number of transactions and dollar volume of this market segment are down due to an overall lack of inventory. Overall, the 2014 Sales year eclipsed 2013 by an impressive 48% in Dollar Volume and 28% in Number of Transactions. With 2015 Telluride Regional Real Estate cruising along and up 5% in number of transactions, and off just 13% in dollar volume, it is good to see sustained action in the town of Telluride despite lower inventories, as well as increased activity in the remainder of San Miguel County. Soon we will see reservation agreements transfer to contracts at the new Downtown Telluride Ajax Hotel and other projects in the pipeline include the final phase of 7 Owl Meadows units and the duplex development at the corner of Aspen and Pacific Streets. The Hotel Madeline property continues to sell, as does Cassidy Ridge and the Villas at Cortina. Even better is the activity in vacant residential land sales in San Miguel County (does not include Mountain Village or town of Telluride) in the first quarter of 2015, with the number of transactions up 375%. Wow, but can we increase the activity to return to the pre-recession sales levels of land? A few quick year to date market highlights: the re-awakening of the 35 acre luxurious land market with 5 sales and 2 contracts at Gray Head, Sunnyside, Diamond Ranch and West Meadows, San Miguel County Residential Home and Land market increasing year to date over 2014 by over 29%, the Telluride Ski Ranches closing multiple properties at historically high levels, and vacant town of Telluride land sales increasing by an impressive 180% over the previous year. Specific single property sales highlights in 2015 are: A Main Street Wintercrown Penthouse re-selling in two years at a whopping increase of 110%, closing at $3,450,000, the $9 million sale of a hotel development site in Downtown Telluride, the $8.1 million sale of a hotel site adjacent to the Mountain Village Gondola, the Telluride Ski Resort purchase of the commercial areas of the Peaks Resort and Spa, 538 Benchmark Drive closing at $1,035 per square foot in Mountain Village, and the town of Telluride residential sale at 602 West Columbia closing for $1,167 per square foot The biggest question as we further examine the local marketplace: Will Buyers accept that prices are still going up and the investment necessary to be member of Telluride community has increased and in some cases significantly? Bank owned sales, short sales and highly motivated Sellers are increasingly uncommon, unless it is a Mesa property. Telluride's remote location and overall lack of inventory combined with unmatched lifestyle has turned our entire market from negative to positive, in dollar volume, number of transactions and most importantly the mental perception that many Buyers and Sellers have.

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