Following the strongest year, both in gross dollar volume and incidents of sales during 2014, the first three quarters of 2015 indicate that the market is holding firm. Although the statistics indicate a slight downturn from the previous year of 7.5% ($355M vs. $383.9M), sales data during 2014 included an extraordinary sale of the Madeline Hotel at $39.8M. Excluding this transaction, the market in 2015 is on par with the prior year. According to the MLS, approximately $125.2M of sales are currently under contract, which would seem to indicate that year end totals will approach the volume achieved in 2014. Given falling energy prices in key Telluride, buyer market segments, volatility in the stock / financial markets and the approach of election year uncertainties, the Telluride real estate marketplace appears to have maintained stability.
How the Major Market Segments have performed:
Town of Telluride
- Gross Dollar Sales down 3.5% ($154.5M vs. $149.1M)
- Sales Numbers up 2% (142 vs. 145)
Town of Mountain Village
- Gross Dollar Sales down 27.2% ($165.7M vs. $120.6M)
- Sales Numbers down 3% (139 vs. 133)
Remainder of County
- Gross Dollar Sales up 21% ($63.8M vs. $77.2M)
- Sales Numbers up 26% (108 vs. 136)
Specific Sub-market Segment Performances of Note:
Town of Telluride Condominiums down 9.6% ($66.5M vs. $61M)
Town of Telluride Homes down 39.4% ($58.4M vs. $35.4M)
Mountain Village Condominiums up 35.3% ($46.8M vs. $55.2M)
Mountain Village Homes down 20.8% ($60.2M vs. $47.7M)
Town of Telluride Commercial (vacant plus improved) up 100% ($21.5M vs. $42.8M)
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 (sales up 100%). Values of this property type have increased nearly 50% since the end of 2014. 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 in the upcoming year.