Following the strongest year, both in gross dollar volume and incidents of sales during 2014, gross dollar sales in 2015 indicate that the market is holding firm. Although the statistics indicate a modest downturn from the previous year of 9% ($461.8M vs. $507.1M), sales data during 2014 included an extraordinary sale of the Madeline Hotel at $39.8M and the 2015 sale of a development lot in the TMV (transfer of LLC, no deed of record — $8M). Excluding this former transaction from 2014 sales and including the latter transaction in 2015 sales, the market in 2015 was on par with the prior year. According to the MLS, approximately $68M of sales are currently under contract, which would seem to indicate that the market is off to a good start in 2016. Given falling energy prices in key buyer market segments, volatility in the stock / financial markets and the approach of election year uncertainties, the Telluride real estate marketplace appears to be maintaining stability.
How the Major Market Segments have performed:
Town of Telluride
- Gross Dollar Sales down 8.1% ($179.2M vs. $195M)
- Sales Numbers down 5% (181 vs. 190)
Town of Mountain Village
- Gross Dollar Sales down 20.7% ($179.2M vs. $226.2M)
- Sales Numbers up 5.8% (191 vs. 180)
Remainder of County
- Gross Dollar Sales up 16.2% ($103.1M vs. $88.7M)
- Sales Numbers up 19.6% (183 vs. 153)
Specific Sub-market Segment Performances of Note:
- Town of Telluride Condominiums down 10% ($76.7M vs. $85.3M)
- Town of Telluride Homes down 40.1% ($45.1M vs. $75.4M)
- Mountain Village Condominiums up 36.1% ($82.8M vs. $60.8M)
- Mountain Village Homes down 22.7% ($69.9M vs. $90.4M)
- Town of Telluride Commercial (vacant plus improved) up 75.1% ($45.2M vs. $25.8M)
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 75.1%). 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.