Category Archives: Quarterly Updates

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2015 First Quarter Market Update / Stability Maintained

Total sales for the first quarter is on par, in both dollars and numbers, with the first quarter of 2014, the latter registering the highest gross dollar sales since 2007.  The modest downturn of Historic Town of Telluride sales is largely the result of a lack of quality inventory, which was seriously depleted during 2014. The increase in gross dollar sales of Mountain Village condominiums and homes in the first quarter of this year helped maintain overall market stability as compared to the first quarter of 2014.   Currently as of March, $83.3M in transactions are under contract with $41M closed in March alone, with almost $92M closed YTD.

How the Major Market Segments have performed:

Town of Telluride

  • Gross Dollar Sales down 7.4% ($39.5M vs. $42.7M)
  • Sales Numbers down 4.7% (40 vs. 42)

 

Town of Mountain Village

  • Gross Dollar Sales up 1% ($37.1M vs. $36.6M)
  • Sales Numbers down 7.6% (37 vs. 43)

 

Remainder of County

  • Gross Dollar Sales up 1% ($14.9M vs. $14.8M)
  • Sales Numbers up 48% (31 vs. 21)

 

Specific Sub-market Segment Performances of Note:

  • Town of Telluride Condominiums up 9% ($23.9M vs. $21.9M)
  • Town of Telluride Homes down 54% ($5.5M vs. $12M)
  • Mountain Village Condominiums up 24% ($16.4M vs. $13.2M)
  • Mountain Village Homes up 67% ($16.7M vs. $10M)

With the increase in commercial leasehold rates within the Historic Town of Telluride and redevelopment opportunities of commercial structures, the commercial segment of the market has rebounded dramatically since the beginning of 2014.  Values of this property type have increased nearly 50% since the end of 2013.  For value driven investors, Telluride Mountain Village homes and condominiums continue to be quite attractive together with regional homes.  For those interested in a design / build process, excellent vacant ground opportunities exist in nearly all market segments.  With the lack of standing inventory in the Town of Telluride, we believe that vacant lots will be a focal point for investors / developers this summer.

 

Note: Background statistics provided by Telluride Consulting and the Telluride MLS

2014 Year End Market Update Telluride, CO / Strongest Since Peak

ElkFriends of Telluride ~

Telluride continues to lead mountain destinations out of the recession, setting records for skier visits, tax revenues and air service over the past year, and looking to do it again this winter. For 2014, Telluride is pacing to finish up 12% in sales tax revenues, a new high, the ski resort reported a record number of skier visits,and the air organization, with 20% growth, put back on the books the largest number of seats it has brought into the region.

This season, the resort had great early snow, and pacing across the destination is up 10% – 20% to-date. Another good snowstorm or two and a strong spring break, and Telluride is set to push last year’s records even higher.

If you have an interest in learning more about “best buys” in any market category, send us an email and we will send along our top picks – – they are going fast!

Hope to see y’all on the slopes in Telluride,

TD Smith, Chris Sommers and Alex Smith

Total sales registered in 2014 was the strongest year in both dollars and numbers since 2007.  Nearly every month of 2014 registered dramatic increases relative to the same months of 2013.  Total combined sales have outpaced 2013 by 48% ($507.1M vs. $342.2M). Incidents of sales increased 28% indicating a steady increase of absorption of inventory. This very positive market performance in 2014 provides strong indicators for a very positive outlook for 2015.  Currently, as of mid-February, $78M in transactions are under contract with $25M in gross dollar sales closed in the month of January 2015 (per the MLS).

How the Major Market Segments have performed:

Town of Telluride

  • Gross Dollar Sales up 58% ($199.6M vs. $125.8M)
  • Sales Numbers up 62% (190 vs. 117)

Town of Mountain Village

  • Gross Dollar Sales up 63% ( $218.5M vs. $133.6M)
  • Sales Numbers up 11% ( 180 vs. 162)

Remainder of County

  • Gross Dollar Sales up 8% ($88.9M vs. $82.5.0M)
  • Sales Numbers up 20% (153 vs. 127)

Specific Sub-market Segment Performances of Note:

  • Town of Telluride Condominiums up 94% ( $85.3M vs. $43.9M)
  • Town of Telluride Homes up 46% ( $75.4M vs. $51.7M)
  • Mountain Village Condominiums down 31% ($60.8M vs. $79.8M)
  • Mountain Village Homes up 125% ($90.4M vs. $27.8M)

Note: Mountain Village condominiums experienced a surge in sales in 2013 related to investor owned product purchased in bulk during the recession. With prices increasing and absorption on the rise, it is believed the lull in sales is temporary.

Although a “market snapshot” as to value in a boutique real estate marketplace such as Telluride can be difficult to ascertain with a great deal of accuracy, the average sales price PSF of a Town of Telluride home with an asking price above  $1M YTD is $904 compared to $807 in 2013. In the Telluride Mountain Village, under the same search criteria as those stats, compare $545 in 2013 vs. $669 in 2014. As the market continues its upward momentum, increased values and velocity of sales should follow suit, as has been witnessed in the Historic Town of Telluride and Mountain Village market wherein 21 home sales have transacted above $800 PSF, of which 15 were above $900 PSF and 9 above $1000 PSF.

Note: Background statistics provided by Telluride Consulting and the Telluride MLS

 

 

First Quarter Market Update 2014 / Strongest Since 2008

With 2013 year-end sales holding steady verses 2012, the first quarter of 2014 registered the largest dollar volume of closings in six years. The months of January, February and March demonstrated increases over those same months of 2013 by 116%, 25% and 45%, respectively. Total combined first quarter sales outpaced 2013 by 47% ($94.2M vs. $63.9M).  As we enter the summer season, a robust first quarter bodes well for the entire year, as the summer marketplace has out-performed  winter sales over the past two years. Another strong indicator of continuing market strength — 79 properties are currently under contract with a total sales volume of $104.4M. Assuming a majority of those transactions close in the second quarter, momentum will most certainly continue in the Telluride regional marketplace.

Of the three major market areas (Town of Telluride, Mountain Village and Remainder of County), Historic Telluride experienced the most dramatic increase in volume of 112% ($42.7M vs. $20.1M), followed by the “County Sales” with a  percentage increase of 61% ($14.8M vs. $9.2M) and Mountain Village — plus 7% ($36.5M vs. $34.2M). Of particular note, Town of Telluride (TOT) condominium sales nearly tripled ($21.9M vs. $8.1M) and the sales volume of TOT homes more than doubled ($11.9M vs. $5.2M). Telluride Mountain Village (TMV) condominium sales, that had experienced a sales volume increase in 2013 of 51%, continued a brisk pattern of sales ($13.2M vs. $14.7M). The sale of TMV residences continues to be a bit soft with $10M in first quarter closings, however, with $15.6M currently under contract that market appears to be rejuvenating as investors realize excellent value in that  market segment.

Although a  quarterly “market snapshot” as to value in a boutique real estate marketplace such as Telluride can be difficult to ascertain with a great deal of accuracy, the average home sale price of the combined TOT and TMV markets in the first quarter was $2.8M. Year-end statistics for 2013 revealed an average of $2.2M. The overall average price per transaction in the first quarter was $890,000 vs. $834,000 for the entire year of 2013. As the market continues its upward momentum, increased values and velocity of sales should follow suit, as has been witnessed in the Historic Town of Telluride market.

 

Note: Background statistics provided by Telluride Consulting and the Telluride MLS

 

 

2013 Year End Update / Market Holds Its Own

’09-’13 CAGR Graph

After a record setting December of 2012 ($76,000,000 in gross sales), probably the result of investors desire to close by year end due to potential tax code changes, the Telluride marketplace “played catch up” for most of 2013. Very strong months of May, August and September where sales outpaced the prior year by 49% led to a bullish December with $65.6M in transactions, but short of matching the prior December. A reduction of 6% ($342.2M vs. $364.7M) in gross dollar sales volume is not surprising given the year end market anomaly of 2012. The past year was the second strongest market in both gross dollars and number of sales since the height of the market in 2007.

Although sales in the Mountain Village declined 13%, 2013 gross sales of Telluride Mountain Village (TMV) condominiums increased 51% ($79.8M vs. $53.0M). Town of Telluride (TOT) condominium sales increased slightly 6.5% ($43.9M vs. $41.2M). TMV homes are lagging behind the market with $27.8M closed in 2013 vs. $76.1M for 2012. Of particular note, commercial real estate sales in the TOT climbed 67% ($14.9M vs. $8.9M) as leasehold and occupancy rates have dramatically increased. The balance of San Miguel County remained stable this past year with 2013 sales of $82.5M vs. $87.8M during 2012.

Given that nearly 60% of 2012’s real estate transactions closed as the result of contracts and closings occurring from August through the end of the year, 2013 tracked in the same manner as sales in 2012, so it is becoming apparent that the summer / fall selling season is outperforming the winter. This same indicator seems to be present in statistics for retail sales tax as well. Summer tax revenues have eclipsed winter in the recent past.

A very good indicator for the upcoming year is the fact that $93.1M in transactions are currently under contract. The Town of Telluride has long been the market leader and as Historic Telluride goes, the balance of the marketplace soon follows suit. Town of Telluride residential homes and condos have witnessed 21 contracted or closed properties in the past 24 months securing $950 + PSF at price levels between $2M and $6M – – Hopefully a very good indicator for the balance of the marketplace.

Let us know if we can provide you with any specific market data and hope to see you on the slopes this winter.

Regards,

TD, Chris and Alex

 

Third Quarter Market Update for 2013

3rd Quarter Market Update / Catches Up to 2012

After a record setting December of 2012 ($76,000,000 in gross sales), probably the result of investors desire to close by year end, the Telluride marketplace “played catch up” throughout the winter, spring and early summer of 2013. Uncertainty related to potential tax code changes in 2013, incentivized both buyers and sellers to culminate transactions in December of 2012 that might otherwise have occurred in 2013. A very strong 3rd quarter that was up 29.8% over the 3rd quarter of 2012, placed gross dollar sales 6% ahead of last year’s sales ($225M vs. $212M) with August and September closings up 56% and 63%, respectively, over those same months of 2012.

Of particular note, YTD 2013 Telluride Mountain Village (TMV) condominium gross dollar sales have increased 53% ($52M vs. $33.9M). Town of Telluride (TOT) condominium sales increased 22% ($27.5M vs. $22.5M). The average price per incident of TMV condo sale increased from $873,000 to $918,000, while the same data related to the TOT was $739,000 to $842,000. The sale of TOT homes has remained relatively stable ($30.7M vs. $33.1M), as has the average price per incident of sale ($1.8M vs. $1.9M). TMV homes are lagging behind the market with $24.4M closed YTD vs. $36M for the same period of 2012.

Given that nearly 63% of 2012’s real estate transactions closed as the result of contracts and closings occurring late summer through the end of the year, and 2013 appears to be tracking in the same manner, it is perhaps becoming apparent that the summer / fall selling season is outperforming the winter. This same indicator seems to be present in statistics for retail sales tax as well. Summer tax revenues have eclipsed winter in the recent past.

A very good indicator for the upcoming last quarter is the fact that $83M in transactions are currently under contract. It is highly unlikely that we will experience the same burst of sales in the month of December as was experienced in December of 2012. However, the market is likely to exceed $300M in gross dollar sales, but fall short of the $364.7M of 2012. The Town of Telluride has long been the market leader and as Historic Telluride goes, the balance of the marketplace soon follows suit. Town of Telluride residential homes have witnessed 26 contracted or closed properties YTD with 6 homes securing $1,000 + PSF and 10 homes sold or contracted between $2M and $5.9M – – Hopefully a very good indicator for the balance of the marketplace.

Let us know if we can provide you with any specific data related to any market segment.

See you on the slopes this winter,

TD, Chris and Alex

Telluride Market Update April 2012

Telluride Market Update

 

Greetings from Telluride ~

We have had an excellent winter in Telluride with over 17 feet of snow and an uptick in both retail sales and skier days.  The Historic Town of Telluride reports that retail sales year end 2011 were the highest in 20 years.  After rather lackluster real estate sales in the month of January, it appears as though transactions for February and March are tracking attained numbers for those same months of 2011.

$18.9M of sales closed in February (vs. $19.8M in February of 2011) and $38.1M of sales have closed in March (vs. $27.3M in March of 2011) – – a 40% increase in sales dollar transactions with a 26% increase in transaction volume.  So, it certainly seems that momentum is gaining in our marketplace and has nearly made up for slow sales in the month of January.

On another very positive note, over $91M is currently under contract which bodes well for April and May which realized approximately $42.6M in total sales for those months in 2011.  44 properties sold or contracted YTD are over $1M with 25 between $2M – $12.5M, so it appears as the upper end of the market is experiencing a bit of a revival.

During the past 12 months, the Town of Telluride seemingly has been the market leader with 18 sales over $1M, 10 sales above $2M, 4 sales between $2.9M – $6M and those four sales averaged $934 PSF. The Telluride Mountain Village Market continues to present excellent buyer opportunities with 76 homes currently in market above $1M.  The Mountain Village experienced 27 transactions over $1M during the same period, 13 of those transactions were over $2M and 5 between $5M – $12.5M.  This compares to the prior 12 months where there were 39 sales above $1M, 17 above $2M and 6 between $5.1M and $9.5M.

Telluride has also been the recipient of some very good press as of late, being acknowledged by both National Geographic and Conde Nast Traveler as being one of the top ski resorts in the world (see links below).

http://www.cntraveler.com/ski-areas/2011/12/top-ski-resorts-2011#slide=4

http://adventure.nationalgeographic.com/adventure/trips/best-ski-towns-photos/?source=TravHPCarouselSkiTowns#/telluride-colorado-snowboard_47319_600x450.jpg

Below is a list of our outstanding summer festivals.

Mountain Film Festival – May 25-28, 2012
Telluride Bluegrass Festival – June 21-24, 2012
Telluride Wine Festival – June 27 – July 1, 2012
Telluride Plein Air Festival – June 29-July 5, 2012
Fireman’s Fourth of July Celebration – July 4, 2012
Telluride Playwright’s Festival – TBA, 2012
Telluride Yoga Festival – July 12-15, 2012
Telluride Americana Music Festival – July 18-21, 2012
Telluride Jazz Celebration – August 3-5, 2012
Telluride Festival of the Arts – August 10-12, 2012
Telluride Film Festival– August 31 – September 3, 2012
Telluride Blues & Brews Festival – September 14-16, 2012

We look forward to seeing you in the mountains this summer.

Regards,

TD Smith, Chris Sommers and Alex Smith

TD Smith
President / Managing Broker
Telluride Real Estate Corp.
232 W. Colorado Ave.
Telluride, CO  81435

c | 970.729.1577
o | 970.728.1606
w| www.tdsmith.com

 

 

2010 Market Recap: Telluride’s Market Continues to Show Signs of Recovery

Year end gross dollar sales in the Telluride Region during 2010 performed 20% above 2009. Sales of $317.6M paced at 92.5% of 2008 which was the partial year of sales production not negatively influenced by the current recession. Numbers of transactions increased 18% and the average price per incident remained stable indicating a stabilizing in value across all market categories.

Telluride real estate market stats update

According to statistics compiled by Telluride Consulting, a total of 103 sales transpired in the Town of Telluride representing total gross dollars of $107.2M. A total of 136 sales occurred in the Town of Mountain Village with gross dollars sales of $148.6M. The remainder of San Miguel County experienced 88 sales totaling $61.9M. The brightest segments of the market occurred with a 67% increase in gross dollar sales of Town of Telluride condominiums, a 55% increase in Mountain Village homes and a 126% increase in the Town of Telluride homes.

There are 15 pending transactions above $2,000,000, and, when coupled with those already closed above that dollar amount YTD, a total of 60 sales / contracts in 2010 is a very healthy increase over only 13 such sales in 2009.

Telluride Market Stats update

Telluride and Mountain Village Condo Sales

This data seems to indicate a strong renewed interest in investment in the Telluride lifestyle with its limited, high quality inventory. As mentioned in prior market updates, the catalyst for stronger sales has been a willingness by some sellers to accept price levels 20% – 30% below the market highs of 2007. Those sellers are not necessarily in “must sell” situations, but are often times seeking liquidity for alternative investments. Investors are gravitating to discounted “Grade A” properties, and seem to be avoiding the limited number of problematic foreclosure and short sale scenarios in the region.

With the gross dollar sales increasing, it is likely that a “bottom” has been reached and sellers will over time resist these deeper discounts and the market will respond with gentle appreciation. Those sellers who have held firm with price structure must remain patient, but oddly have contributed to “setting the bottom” and will influence the rise in future values. Premium properties at significant higher pricing will likely lead the market into a slow, but steady appreciation cycle. With 14 homes and condominiums transacted YTD at an average price of $5,250,000 and with an average PSF of $859, this cycle is likely in motion, given that these sales represent nearly 23% of total sales volume.
We look forward to seeing you in Telluride.

Regards,

TD Smith and Chris Sommers

2010 Telluride Real Estate Market Update

The Telluride real estate marketplace experienced its seventh consecutive
month with an increase in sales over the prior year. Fourth quarter sales of
2009 increased 231% over that same quarter of 2008, producing $114.9 million
in dollar volume of transactions. Dollar volumes in January, February, March
and April exceeded those same month’s sales in 2009 by 55%, 86%, 120% and
350%, respectively. Perhaps a more important indicator of a rebound in the
marketplace is the fact that the numbers for April are nearly 2/3rds of
those realized in April 2008. At that point in time, sales began to decline
sharply with the ongoing economic crises.

According to Telluride Consulting 107 transactions have closed year to date,
with 82 of those sales occurring in the Telluride Mountain Village and
Historic Telluride. Six homes closed in the Village at an average of $5.2
million and 8 Homes in Historic Telluride at an average of $2.4 million.
According to the MLS, there are 79 properties currently under contract in
both those communities, totaling $115 million in potential sales volume.
Eighteen transactions YTD have been above $4 million, 14 above $2 million
with Historic Telluride experiencing a transaction at $9.9 million and the
Mountain Village two sales at $8.0 million and $10.1 million.

While we do not anticipate a boom cycle on the near horizon, this data seems
to indicate a strong renewed interest in investment in the Telluride
lifestyle with its limited, high quality inventory. The catalyst for
stronger sales has been a willingness by some sellers to accept price levels
20-30% below the market highs of 2007. Those sellers are not necessarily in
“must sell” situations, but are often times seeking liquidity for
alternative investments. Investors are gravitating to discounted “Grade A”
properties and seem to be avoiding a limited number of problematic
foreclosure and short sale scenarios.

With the velocity of sales increasing, it is likely that a “bottom” has been
reached and sellers will over time resist these deeper discounts and the
market will respond with gentle appreciation. Those sellers who have held
firm with price structure must remain patient, but oddly have contributed to
“setting the bottom” and will influence the rise in future values. Premium
properties at significantly higher pricing will likely lead the market to a
gentle appreciation cycle. With thirteen homes transacted in the past 120
days at $800 PSF – $1,000 PSF, this cycle is likely in motion.

We look forward to hearing from you.

Regards,

TD Smith & Chris Sommers

OUR NEWSLETTER



T. D. SMITH, President/Managing Broker
Telluride Real Estate Corporation
232 W. Colorado Ave., P.O. Box 1739 Telluride,
Colorado 81435. Phone: 970-728-1606

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