2016 Second Quarter Market Update / A Roller Coaster
Following 2015’s second strongest year in gross dollar volume and the most incidents of sales since 2007, gross dollar sales year to date indicate that the market is a bit volatile, yet resilient. Properties contracted in late 2015 resulted in a 36% increase in closed dollars during January and February. The DOW’s unforeseen plunge at the outset of 2016 and decline in energy prices to a dramatic low, caused investor uncertainty which resulted in a decline of closings during March, April and May of approximately 33%. One can also not ignore that some buyer trepidation was due to the uncertain political arena.
As the financial markets began to rebound along with oil and gas prices, renewed interest in real estate was realized during the off-season and production during the month of June demonstrated a healthy increase of 15% over June of 2015 with a year to date reduction in sales down a modest 10%. Taking all of these matters into consideration, the Telluride real estate market seems to have weathered negative outside influence exceedingly well.
According to the MLS, approximately $115.3M of sales are currently under contract, which would seem to indicate that the market continues to head in a positive direction for the balance of 2016.
How the Major Market Segments have performed:
Town of Telluride
- Gross Dollar Sales up 69.0 % ($38.5M vs. $65.1M)
- Sales Numbers down 22 % (86 vs. 67)
Town of Mountain Village
- Gross Dollar Sales down 1 % ($73.0M vs. $72.0M)
- Sales Numbers up 29% (76 vs. 98)
Remainder of County
- Gross Dollar Sales down 13.8% ($46.9M vs. $40.4M)
- Sales Numbers up 31% (67 vs. 88)