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