Over the last five years, three were significantly impacted by COVID, resulting in an average gross dollar sales of $1.2 billion. However, year-to-date (YTD), the market has witnessed a 6% increase over this 5-year average, indicating that the Telluride marketplace is settling into a “new normal.”When looking back over this 5-year period, the yearly average was $960 million.
What’s even more striking is the market’s resilience, demonstrated by a significant drop in inventory—up to 50% compared to pre-pandemic levels. A noteworthy trend is the shift in investor sentiment in Telluride, traditionally resistant to prices over $10,000,000. However, this resistance is now a thing of the past, with 12 properties closing between $10,250,000 and $18,900,000 YTD.Due to this scarcity in inventory, San Miguel County’s average sale prices have surged by 10%, while the Town of Telluride and the Mountain Village have seen increases of 13% and 48%, respectively. The Mountain Village segment of the market has notably accounted for 51% of the total sales volume YTD, up from 40% during the same period last year. Moreover, sale prices in Mountain Village have surged by 25%.
In simple terms, the real estate marketplace in Telluride is influenced by supply and demand economics. It has shown resilience in maintaining its value even during economic downturns, despite occasional declines in sales. The Telluride region is encircled by federally-controlled property (USFS and BLM), limiting future growth to approximately 14,000 private acres. Nearly all of this private land is subject to a master plan, allowing for the development of fewer than 4,000 single-family equivalents on about one third of the mentioned land. This density is significantly lower than what is allowed in other major resorts. The assurance of controlled growth in the future is a significant factor positively impacting the marketplace, both in terms of volume and value.
Real Estate Market Update, ending of the 3rd quarter results………
