Are we in the perfect buyer’s market?
After nearly four decades of Telluride real estate experience, I believe conventional wisdom would say that is the case. Although we will never know for certain that a bottom has been reached until we look into a rear view mirror, the signs for a thawing in the marketplace are very real.
- Nearly 80% of all real estate buyers begin a search through the internet and my inquiry traffic has increased 300% in the past 90 days.
- Showing appointments have increased dramatically to qualified buyers with renewed confidence in the Telluride market and its lifestyle.
- Gross dollar sales increase in the second quarter of 2009 by 10%.
- Five homes in the Telluride Mountain Village sold in the second quarter at an average of $4,000,000 vs. just one home in the first quarter.
- Although our most current recession has much greater depth and severity than those I have experienced in the past, historically Telluride has recovered quickly with double digit inflation.
That being said, there are select sellers in the market desirous of liquidity and are willing to discount below market highs in the range of 15 – 25% (2004 – 2005 values) for highly desirable opportunities. While many owners, with excellent staying power who resist discounting, are helping to prop up values, the fact can not be ignored that there are numerous incredible values to be had. A market characterized as one with very limited inventory, where demand for the Telluride lifestyle has always outstripped supply, overall inventory has swelled presenting prospective purchasers with a wide range of attractive alternatives.
I am frequently asked, “Are we at the bottom? Is now the time to cut the best deal?” My response is fairly simple – - If your family desires our lifestyle – - there is never a bad time to invest in Telluride real estate. You can wait a few months and maybe save a few more percentage points, but your investment today is enjoyed immediately and any “wait and see” savings, if realized, will be recovered in the very near term. There is the distinct possibility, according to well documented historical data, that our unique little marketplace will cost a great deal more for those who wait for a home run.
Remember, there are 4,000 pretty happy property owners who are very pleased with the performance of their holdings in Telluride and not so happy with their paper investments.
TD Smith and Chris Sommers