Market Report

May 2016-Telluride Real Estate Market Conditions

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CURRENT TELLURIDE REAL ESTATE MARKET CONDITIONS Updated May 2016 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 sustained this sizzling pace through the first half of the year, but dipped slightly at the end of the year and we ended up down 9% in dollar volume in San Miguel County. The good news is that the number of transactions in 2015 were actually up 6%, with many of the remaining value properties in the region sold. With the 2015 Telluride Regional Real Estate year behind us, how did The Telluride Region fair early in 2016 and what is the forecast for the remainder of 2016? As of April 30 th , the market has slowed and currently is down 7% in dollar volume as compared to 2015, yet up 13% in number of transactions. Taking a look at the specific markets within San Miguel County we are seeing the following. The town of Telluride activity is still healthy, but the overall sales volume in both number of transactions and dollar volume of this market segment are down due to a general lack of inventory. This lack of availability has led to a building boom, and inventories in downtown Telluride will increase later in 2016, 2017 and beyond. With the lower inventories, sales in Historic Telluride dropped off 24% in 2015. The Town of Telluride has numerous projects under construction, approved through the town of Telluride, or in the pipeline for approval. Some of the larger examples include the Ajax Hotel on the corner of Colorado Avenue and Willow Street, The Transfer Station project that encompasses a large portion of a town block on South Fir Street, The final seven units at Owl Meadows, Bear Creek Preserve, The West Pacific Townhomes and development of the Pacific Street and Spruce Street commercial property. Despite Mountain Village residential sales dropping 23% in 2015, the number of residential land sales doubled in 2015 and the condominium market was up 21% in 2015. The Hotel Madeline property led the charge with sixteen sales in 2015 and continues to draw sustained interest and activity. Homes in San Miguel County have also seen a modest increase in 2015 of 11% in dollar volume, but most surprising is the 40% increase is residential land sales, led by a reawakening of the luxurious 35+ acre land segment! Specific recent property sales highlights include: two land sales each at Sunnyside and West Meadows with Lot 19 in West Meadows closing at $3.15 million, commercial property at 157 and 127 South Fir closing at almost $5.4 million, 11 Historic Telluride Homes selling at $1,000+ per square foot (three of which were over $1200 per square foot!), and the $14.0 million sale to Oprah Winfrey of 184 Butch Cassidy Drive in Mountain Village. The Region continues to invest in its infrastructure. The town of Telluride has added new sewer and water pipes, a new Town Park Pool and a new Town Park Stage. The Telluride Ski Resort is ready to announce a new capital improvement project that will replace four lifts, remodel Gorrono Restaurant, expand Bon Vivant and build a new restaurant at the Top of Lift 10 with Gondola cabins. New snowmaking will be added on the Telluride side as well. Numerous governmental subsidized affordable housing projects are being planned and built. The School is going through a $24 million expansion and we are still moving forward on a new Medical Center in Mountain Village.

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