Archive for July, 2009

Telluride Real Estate Market Update

Friday, July 31st, 2009

Stream 1Are 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.

 Regards,

 TD Smith and Chris Sommers

970.728.1606

TD@tdsmith.com   /   Chris@tdsmith.com

Market Update – Telluride Real Estate

Wednesday, July 22nd, 2009

Telluride is enduring an 18 month global economic downturn which began in the fourth quarter of 2007.  Our real estate market has remained relatively stable with regard to pricing, but volume of sales declined in 2008 by 55% versus 2007. That decline in gross dollar sales has continued into 2009, down some 80% as compared to the first quarter of 2007 – - the last year of a bullish local market.  

Contributing to the stability of values is an overwhelming majority of non-leveraged, non-speculative owners who continue to enjoy the Telluride lifestyle in a market where supply is severely limited and quality tightly controlled.  It is this firm belief in the inherent quality of life and its real property that breeds patience on the part of owners / sellers.  

At present, the market, for the most part, has stalled.  Although media instilled panic and significant paper losses have driven many investors underground, substantial focused interest was realized this past winter despite negative economic circumstances.  A surprising number of offers were processed with buyer expectation of significant discounts falling well short of seller willingness to accommodate those discounted offers. 

Better news seems to be forthcoming related to the global economies and the gap between buyer and seller expectations is likely to narrow during the late summer and fall months.  Sellers must exercise patience and buyers must recognize the historical significance of Telluride as a safe haven for investment – - both as to the bottom line and personal lifestyle.  Business cycles always reverse themselves, and while we are in that reversal process, buyers have some select opportunities to acquire improved properties below replacement cost and sellers, with motivation for liquidity, can achieve such if price levels below the 2007 standard are sought.  For those less-than-desperate sellers, develop a detailed pricing strategy now such that upon the first signs of recovery, your property might be one of the first to move related to the competition.

The bottom line—Telluride is no less a special place than before the economic downturn. Its inherent beauty, controlled growth, sense of community, pristine environment, abundance of public lands, lack of vehicular congestion and cultural events posture this market place in the medium term as a landing place for investors for generations to come.

We look forward to seeing you in Telluride this summer.

aaavalley floor 7-02 2TD Smith and Chris Sommers

NEW LISTING – 109 Eagle Drive, Telluride Mountain Village, Colorado

Wednesday, July 22nd, 2009

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New Listing – Telluride Mountain Village, Colorado

Friday, July 10th, 2009

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Legend has it that Butch Cassidy consumed some liquid courage at the local Town of Telluride Pool Hall before his unauthorized withdrawal and ingenious getaway from the San Miguel Valley Bank just down the street. The pool hall’s bar and back bar was painstakingly restored and architecturally woven into the residence’s lower level game / family room with expansive stone fireplace, spacious seating areas, and yes, ample room for a pool table. This level, with expansive window openings to a hot tub patio, also includes two additional guest bedrooms, laundry, ski-in mudroom, home theatre and flex area ideal for placement of exercise equipment.

A re-cycled, Douglas Fir timbered and vaulted two story great room envelops a chef’s kitchen and dining area soothingly divided by a massive two-sided timber and rock fireplace. Lift and slide glass doors grant access to a covered mahogany deck running the entire length of the main living area. Views of the majestic San Sophia Ridge are perfectly framed bringing the mountainous environment within. The main level also is graced with a main master, with ensuite bath and very generous walk-in closet. A third guest bedroom with fireplace and bath also doubles as a den, study library.

The upper level comprises an equally elegant second master and office, and above a three car heated garage with access from within the primary dwelling, a comfortable and cozy guest house will offer privacy to visiting family and friends.

Surface specs, appliances, lighting (Lite Touch) and other systems are what is to be expected in a home with a perfect blend of the rustic Telluride mining era and the comforts of contemporary design: Alder cabinetry, wide plank re-cycled oak flooring; exquisite slates, travertines, mosaics, granites and limestones; Miele, Subzero, Thermodor and Dacor appliances; Kohler, Rohl, Franke, Grohe, and Sonoma plumbing fixtures.

Telluride Real Estate Corp. Announces New Affiliation

Friday, July 10th, 2009

Despite being one of the oldest real estate brokerages in the Telluride region, Telluride Real Estate Corp. is dedicated to remaining on the cutting edge of marketing, technology, and competition.  That’s why, when recently invited to join Leading Real Estate Companies of the World as Telluride’s sole affiliate, we jumped at the chance.  

Initially formed in 1963 as a referral network, Leading Real Estate Companies of the World has evolved into the leading business affiliation for independent, non-franchised real estate companies.  According to REAL Trends Top 500 survey, Leading Real Estate members led in total 2008 sales among the 500 highest-producing residential real estate firms in the U.S. who reported to the survey.  Representing over 555,000 closed transactions, Leading R.E. closed 130,000 more sales than its closest national franchise competitor.  Furthermore, Leading R.E. member offices were the market leaders in more markets than any other national brand.  As noted by Leading R.E. CEO Pam O’Connor, “even in these challenging economic times, our strong locally branded brokerage companies continue to set the pace.”

Of course, the luxury auction house affiliation model has proven to be highly successful, but we are now able to better serve our clients by expanding our reach even further through the addition of this new affiliation.  Leading Real Estate Companies’ website network receives more traffic than the network of our strongest local competitor, and is far-reaching with offices in 38 countries.  In a U.S. market that has been experiencing huge growth in sales to international buyers, aligning ourselves with brokerage firms in other countries is more important than health aid pharmacy ever.  The unique opportunity that has been offered to us to couple our Christie’s Great Estates affiliation with that of Leading Real Estate Companies of the World affords us the opportunity to offer our clients unparalleled marketing of TREC listings on a global scale, as well as a referral network that spans the world with over 170,000 sales associates and 40,000 broker-to-broker referrals annually. 

As a non-franchised independent brokerage firm, our affiliations provide a competitive advantage in the Telluride market with, nationally franchised competitors.  We are thrilled to be rolling out our new affiliation and look forward to offering its benefits to our clients.  Look soon for all TREC listings to appear on www.RELOhomesearch.com and www.RELOdirect.com, both of which have exceptional web traffic.  Additionally, please speak with your TREC agent should you find yourself seeking assistance in buying or selling a home in another area—with affiliations with both Christie’s Great Estates and Leading Real Estate Companies of the World, we will be able to match you with an agent to suit all of your needs.

Capella Telluride Recognized by Condé Nast Traveler

Wednesday, July 8th, 2009

The Telluride region’s newest luxury resort has earned one of the most sought after recognitions in the travel industry, lending it a boost at the start of the upcoming summer season.

Condé Nast Traveler magazine has listed the Telluride Capella, which opened this winter in Mountain Village, to its “hot list” for 2009. The recognition places the Capella among just 34 new hotels in the United States to be listed.

“As the first U.S. destination for Capella Hotels and Resorts, we had the great responsibility of introducing a world-class hotel founded upon the principle of service,” said John Volponi, general manager of Capella Telluride, quoted in a press release. “Condé Nast Traveler’s recognition – and so soon after opening – is a testament to the excellence of the entire Capella Telluride team, and I congratulate them wholeheartedly.”

From a local perspective, The Capella enjoys the distinction of being one of just two new hotels, along with lumiere, to have opened its doors in recent years in Mountain Village. In 2006, three other major hotels won development approvals, marking a long-anticipated increase in the region’s bedbase. But as of today, the proposed Telluride Rosewood, the proposed Silverline and a massive remodel of The Peaks are all on hold, set back at least in part by frozen credit markets and the weak economy.

Condé Nast Traveler’s annual hot list is produced by the magazine’s editors and correspondents. It can be seen at www.cntraveler.com/hotlist.

The magazine praises the “100-room stone-and-stucco resort” for feeling “pleasingly intimate despite its large scale,” and describes the staff as “polished” and “as courteous as they are good-looking.”

Among the hotels on the hot list, the Capella Telluride is a relative bargain, thanks to a special introductory rate of $195 from May 21 – Oct. 17, 2009, subject to availability.

The Capella got an additional boost when it was one of the hotels on the hot list specifically discussed health partners pharmacies on NBC’s Today Show on April 14, in a story about the Conde Nast Hot List.

The Today Show segment can be seen at http://today.msnbc.msn.com/id/26184891/vp/30134873#30134873.

TREC Announces New Affiliation with Leading Real Estate Companies of the World

Wednesday, July 8th, 2009

Despite being one of the oldest real estate brokerages in the Telluride region, TREC is dedicated to remaining on the cutting edge of marketing, technology, and competition.  That’s why, when recently invited to join Leading Real Estate Companies of the World as Telluride’s sole affiliate, we jumped at the chance.

Initially formed in 1963 as a referral network, Leading Real Estate Companies of the World has evolved into the leading business affiliation for independent, non-franchised real estate companies.  According to REAL Trends Top 500 survey, Leading Real Estate members led in total 2008 sales among the 500 highest-producing residential real estate firms in the U.S. who reported to the survey.  Representing over 555,000 closed transactions, Leading R.E. closed 130,000 more sales than its closest national franchise competitor.  Furthermore, Leading R.E. member offices were the market leaders in more markets than any other national brand.  As noted by Leading R.E. CEO Pam O’Connor, “even in these challenging economic times, our strong locally branded brokerage companies continue to set the pace.”

Of course, the luxury auction house affiliation model has proven to be highly successful, but we are now able to better serve our clients by expanding our reach even further through the addition of this new affiliation.  Leading Real Estate Companies’ website network receives more traffic than the network of our strongest local competitor, and is far-reaching with offices in 38 countries.  In a U.S. market that has been experiencing huge growth in sales to internat online health pharmacy ional buyers, aligning ourselves with brokerage firms in other countries is more important than ever.  The unique opportunity that has been offered to us to couple our Christie’s Great Estates affiliation with that of Leading Real Estate Companies of the World affords us the opportunity to offer our clients unparalleled marketing of TREC listings on a global scale, as well as a referral network that spans the world with over 170,000 sales associates and 40,000 broker-to-broker referrals annually.

As a non-franchised independent brokerage firm, our affiliations provide a competitive advantage  in the Telluride market with nationally franchised competitors.  We are thrilled to be rolling out our new affiliation and look forward to offering its benefits to our clients.  Look soon for all TREC listings to appear on www.RELOhomesearch.com and www.RELOdirect.com, both of which have exceptional web traffic.  Additionally, please speak with your TREC agent should you find yourself seeking assistance in buying or selling a home in another area—with affiliations with both Christie’s Great Estates and Leading Real Estate Companies of the World, we will be able to match you with an agent to suit all of your needs.