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.