Telluride Real Estate Market Conditions

Many real estate catch phrases have been thrown around in regards to the Telluride Real Estate Market in 2011. Have we “hit the bottom?” Are we “rounding the corner?” We will hit a “double dip” in values and prices? Is it a “good time” to buy? “Am I better off waiting?” Good questions for all Buyers and Sellers, but the 2011 marketplace is best characterized as “situational.”

The majority of the local market segments have proved that they have hit the bottom in 2009 in terms of the number of transactions. The only major segment that doesn’t agree with that, is the Mountain Village Private Residential market. Overall, in the Telluride Region, we are ahead of the total number of transactions as compared to 2010, 2009 and 2008. It is very positive news to see the number of people buying Real Estate in the Telluride region (San Miguel County) going up significantly.

However, when it comes to gross dollar volume in San Miguel County, the Telluride Real Estate Market is lower than the recession years of 2010, 2009 and 2008. At different occasions the negativity of the US media, partisan politics and the European Debt Crisis have dampened closings in 2011 and led to lack of confidence in Buyers. Combine that with strong Sellers who are not forced to sell and own a high level of equity in their Telluride property and the result is a stalemate at the higher end of the pricing scale.

One interesting footnote is that fractional sales are up. This a good sign for the long term health of the Telluride Real Estate Economy. Many of the Buyers of fractional properties first get introduced to Telluride in this manner of ownership, fall in love with our beauty, resort amenities and overall lifestyle and eventually upgrade their residence.

The velocity of sales continue to increase. We are seeing sales at the high end of well over $1,000 per square foot at Auberge/Element 52 Residences, Rivercrown Townhomes and Private Historic Telluride residences. The premium properties at significantly higher pricing levels are continuing to lead the market into a slow, but steady appreciation cycle The Mountain Village is lagging behind with a high inventory, and a wide variety of pricing, locations and qualities, but as evidenced by the contract of an Autumn Lane residence in December 2011, listed at over $1,000 per square foot, this trend could be reversing its course. 

It still comes down to this: if a property has a high level of quality, uniqueness, desirable location, features and amenities, then Buyers have currently proven, that they will “step up” to pay top dollar. Buyers that are less picky, can still find deals out there at up to 40% off the high market times, but will sacrifice something for the inherent value, for example, a stripped bank owned sale, no ski access, high density complex or subdivision, quick cash closing, as well as many other factors.

Some more good news? As of January 25th there was over
$100 million in contracted Real Estate in the Telluride Market!