A YEAR-ROUND ECONOMY
Telluride's spring, summer and fall festival schedule, combined with numerous outdoor activities attract tourist/investors on a year-round basis to a resort where skiing is just one item on the recreational menu. Telluride is as attractive to the non-skier/investor as it is to the skier/investor. As a matter of fact, summer real estate sales often exceed those sales consummated during the winter months.

LIMITED SUPPLY OF DEVELOPMENT PROPERTY
The Telluride Region is surrounded by federally controlled property (USFS and BLM) limiting future growth to approximately 14,000 private acres. Virtually all of the private ground is subject to a master plan which allows for the development of fewer than 4,000 single family equivalents on about one third (1/3rd) of the above mentioned ground. This density is but a small fraction of allowable densities in other major resorts and it is this assurance of future controlled growth that positively drives the market place both with regard to volume and value.

QUALITY CONTROL
The Town of Telluride is a designated National Historic District, and as such, its architectural integrity and the quality of future development are ensured by the National Trust for Historic Preservation and locally, by the Historical and Architectural Review Commission with its set of strict guidelines.

The quality of future development in the Telluride Mountain Village is assured through its detailed Design Review Guidelines, which are enforced by the Telluride Mountain Village Resort Association. The initial projects developed in the Village have certainly set the tone for many upscale projects presently being reviewed by the Design Review Board.

RARE PHYSICAL BEAUTY
The Telluride region is blessed with a most dramatic scenic backdrop. Much has been written in a variety of publications concerning the raw beauty of Telluride, e.g., "In a family of beauties, Telluride is the most stunning" - Boston Globe, November 1989.

In addition, nature's topographical layout enables three mountains and two towns to be joined by one ski area and a high-speed gondola transportation system. This plan has a European flair and, above all, diminishes the need for the bus and automobile. It is also unique that the Telluride Company, master developer of the Telluride Mountain Village and Ski Area owner/operator, controls property mid-mountain on its ski area. This enables the Village project to be entirely ski-in and ski-out with a "commercial core" possessing perfect Southwest solar exposure.

SALES COMPARISON GRAPHS
Graphs provided courtesy of Telluride Consulting.

According to statistics compiled by Telluride Consulting, between 1985 and 1997, gross sales in San Miguel County increased from $54.3 million to over $212.5 million, and between 1998 and 2007 total sales increased from $256.8 million to $756.6 million. Just as important as this long term increase in sales, is the significant appreciation over the past five years. In 2003, the county recorded $433.1 million in sales, while the total volume in 2007 rose to $756.6 million for an impressive compound growth rate of 17% per year. The following seven categories of property substantiate steadily increasing values of real estate in the region:

Mountain Village Residential Lots - The average price for a single-family lot in the Town of Mountain Village in 2003 was $842,600. This average has increased by 39% to nearly $1,172,500 in 2007 with a compound annual growth rate of 9%. It is also noteworthy that premium sites that sold in 2003 for around $1 million to $2 million are now commanding prices from $2 million to $3 million, with a new record high for a single Mountain Village lot set in 2007 at $5.5 million.

Mountain Village Homes - The average price paid for a single family home in the Town of Mountain Village in 2003 was $3,145,300. The average price in 2007 was $3,765,900, with the highest priced sale at $13,041,240. Over the past five years, the average price of a Mountain Village home has increased by 20%, with a compound annual growth rate of 5%.

Mountain Village Condominiums - The average price for condominiums in the Town of Mountain Village has increased from $739,000 in 2003 to $1,469,100 in 2007. This translates into a five-year increase in average price of 99% and a compound annual growth rate of 19%. Recently, upscale unit sales have reached as high as $1,430 per square foot. Five units sold in excess of $4 million during 2007, with the most expensive Mountain Village condominium sale reaching $4,950,000.

Historic Town of Telluride Residential Lots - The average cost per residential homesite (1-2 lots) in the Historic Town of Telluride (excluding the Butcher Creek and Sunset Ridge annexed subdivisions) during 2003 was $736,800. In 2007, residential lots in town sold for an average of $1,139,200, which computes to a compound annual growth rate of 12% per year over the past five years, and an impressive 55% overall increase in average price per sale. It is noteworthy that Telluride residential lot sales in 2007 ranged from a high of $1.8 million for a prime in-town homesite, to a low of $615,000 for a lot in Backman Village. If one were to include the Butcher Creek and Sunset Ridge at Telluride annexation developments, the annual average prices would range from $652,300 in 2003 to $966,700 in 2007. The compound annual growth rate would decline only slightly to 10%, while the percent of increase computes to 48% over the five year period.

Town of Telluride Homes - Single-family residences in 2003 sold for an average cost of approximately $1,038,600. The average cost of a home in Telluride in 2007 was $2,115,200, which represents a compound annual growth rate of 19% per year and a 104% overall increase in average price. Recent high sales have exceeded $2000 per square foot (including land), and nearly $1200 per square foot excluding the Assessor’s land value. The most expensive Town of Telluride residence in history sold for $6,900,000 in 2006, followed by a $5.55 million sale in 2007.

NOTE: Sales statistics for the average cost of Telluride homes can vary widely year to year in relation to the number of "tear-downs" which are purchased for their land value only at very low dollars per improved square foot.

Town of Telluride Condominiums - 2005 set new record highs for condominium sales in historic Telluride with 3 sales exceeding $3 million, the highest being $3,375,000. Seven condo sales exceeded $2,000,000 in 2006 and 2007, and thirteen sales exceeded $1,000 per square foot. Average prices have increased from $398,200 to $883,100 for a compound annual growth rate of 22% over the past five years, and a 122% overall increase in average price since 2003. Recently built units achieve price levels of nearly $1100 per square foot.

Ranch Properties in the Telluride Region - Sales activity of larger acreage in the Greater Telluride Region has been a significant segment of the marketplace over the past five years. Sales of 25 to 40 acre parcels from 2003 through 2007 have ranged from an average price per acre of $26,700 to $40,800, with a record high price per acre of nearly $160,000 in 2006. Larger parcels, from 40 to 75 acres recorded an average price of $6,300 per acre to $23,500 per acre, with a high of $96,000. Parcels from 75 to 200 acres in size sold in San Miguel County, showed a similar range during this five-year period selling from an average of $6,500 to $24,000 per acre, with a high price paid of over $87,000 per acre. Major ranches ranging from 500 to 4,000 acres have sold for an average price per acre of nearly $8,000, and ranging from $2,700 to $13,100 per acre over the past five years.

All data obtained from Telluride Consulting and are deemed reliable but not guaranteed.

T. D. Smith, President/Managing Broker | Telluride Real Estate Corporation
232 W. Colorado Ave., P.O. Box 1739, Telluride, CO 81435 • 970-728-1606 • Fax: 970-728-1104 • td@tdsmith.com

Featured Properties | Current Lisitings | Notable Transactions | Courcheval | Biography | Telluride
TREC | The Market | Activities | Maps | Contact | Site Map | Newsletter | Privacy Statement | Home | Links