The Telluride real estate market place experienced its fourth consecutive month with an increase in sales over the prior year. A dollar volume in January of $24.6 million exceeded that of January 2009 by 55%. Fourth quarter sales of 2009 increased 231% over that same quarter of 2008 producing $114.9 million in dollar volume of transactions.
According to MLS statistics, the Mountain Village and Town of Telluride produced 120 closings and contracts since October 1, 2008. Thirty-five of those transacted exceeded $1,000,000 and sixteen sales transacted above $2,000,000. On the very upper end, the Town of Telluride experienced a $4,100,000 closing and the Telluride Mountain Village a $10,100,000 sale. Of particular note, two properties with asking prices of $15,000,000 and $6,500,000 are currently under contract.
While we do not anticipate a boom cycle on the near horizon, this data seems to indicate a strong renewed interest in investment in the Telluride lifestyle with its limited, high quality inventory. The catalyst for stronger sales has been a willingness by some sellers to accept price levels 20-30% below the market highs of 2007. Those sellers are not necessarily in “must sell” situations, but are often times seeking liquidity for alternative investments. Investors are gravitating to discounted “Grade A” properties and seem to be avoiding a limited number of problematic foreclosure and short sale scenarios.
With the velocity of sales increasing, it is likely that a “bottom” has been reached and sellers will over time resist these deeper discounts and the market will respond with gentle appreciation. Those sellers who have held firm with price structure must remain patient, but oddly have contributed to “setting the bottom” and will influence the rise in future values. Premium properties at significantly higher pricing will likely lead the market to a gentle appreciation cycle. With eleven homes recently sold and/or contracted at $800 PSF – $1,000 PSF, this cycle could be in motion.
We look forward to speaking with you.
TD Smith and Chris Sommers