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.
TD, Chris and Alex