Telluride Real Estate Market Update

The month of May is more like March with two storms that dropped over a foot of snow in the San Juans in the past week. Lifts are closed but the first festival of the summer, Telluride Mountainfilm, is around the corner celebrating its 30th year over Memorial Day weekend.

Through April, Telluride continues to feel the effects of the sluggish national economy with number of transactions down 44% year-to-date and dollar volume down 32% in San Miguel County.

In town, the condo market declined from 28 transactions YTD last year to 15 so far this year. Fractional purchases held steady in town with 14 made last year at this time and 15 this year. Single family home transactions declined from 9 last year to 4 this year YTD. It's a similar story in Mountain Village with 35 condos selling last YTD and 15 so far this year. Fractional purchases are steady in Mountain Village with 30 sold last year and 26 this year. Single family home sales in Mountain Village fell 50% from 12 sold last year to 6 this year. Vacant land sales in Mountain Village have dramatically declined from 15 sales last year to just 1 this year (for $3.2 million).

Single family home sales in the rest of the county have declined slightly from 26 transactions last YTD ($21.7 million total) to 17 this year ($25.1 million). However, residential vacant land sales in the rest of the county are down substantially from 25 purchases last YTD ($16.2 million) to only 6 this year ($3.4 million).

Gauging current activity in the Telluride MLS, there are several properties under contract in Mountain Village and town (at least 49). Backing out pre-completion contracts on various condos leaves 10 properties under contract in town (including the Ice House Hotel asking $11 million) and 10 in Mountain Village (not including the Peaks Hotel which may or may not sell to the current buyer). There are 24 other properties currently under contract around the county with a median asking price of $612,000 totalling $15.6 million.

Buyers are cherry picking their favorite properties amid a vast array of properties. My business remains consistent as I recently closed on three properties for clients, have one more currently under contract and have a couple offers on the table.

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Mountain Village Lot Sales Sluggish

There are 77 lots for sale in MV with a median asking price of $949,000 and an average days on market of 391.

Two lots are under contract, both contracting in the past three weeks with an average asking price of $2.5m.

Four lots have sold since December 1st (all sold in December, none since) with a median asking price of $1.8m and a median sold price of $1.645m and an average lot size of over 2 acres.

Condo Sales Update in Mountain Village

167 condos for sale with a median asking price of $2.035m and a median of 290 days on the market. $390m total inventory. Ten condos are under contract that are not part of any pre-construction or construction-in-progress developments like Capella, Lumiere or Tristant. Median price of those ten are $1.442m.

14 condos have sold since December 1st with a median sold of $1.64m and median ask of $1.83m and an average days on market of 345.

Mountain Village Home Sales Revive

74 homes for sale in MV with a median asking price of $4.325 million, a low of $1.799m, a high of $15.5m and an average days on market of 331. Of the 74 homes, 30 are for sale on the golf course.

5 homes are Under Contract. Four of those contracted within the past three weeks. Median ask price is $6.495m including one for $14.1m. The rich are not blinking.

5 have sold since December 1st.

Telluride Real Estate Versus National Media Perception

The market has slowed down here for sure but it is not as ominous as the broad brush media reports would have us think. There are 82 properties currently under contract in the area with a median asking price of $1.909 million. About a dozen of those are pre-construction contracts on new projects. The remainder of properties under contract represent a wide swath of categories and prices including land, condos, homes and fractionals ranging in price from $25,000 for a cheap fractional to $12.9 million for a spec home on 35 acres near the Telluride airport.

I have made two offers this week and am expecting an offer for a listing on a $2.65 million property later today. One client made an offer on a $1.2 million condo in town. Another client made an offer on a Terraces condo asking $775k and I have a third client getting ready to make an offer on a $4+ million home.

While buyers shouldn't be in a rush to find a property in Telluride, you should be prepared to pounce when the opportunity presents itself. I expect to see more price reductions on select properties in the next 3 months but as you may know many property owners here are wealthy enough to sit and hold onto their asset and ride out this national market cycle.

Do Telluride Ski Ranches Homes Offer Good Value?

Sales of homes in Telluride Ski Ranches have been slow in the past few years. And while some may find this discouraging, others recognize an opening for value.

Currently there are 15 Ski Ranches homes on the market. At the 2007 absorption rate (five homes sold in 2007), it will take three years for all of these homes to sell. The median selling price for homes sold in 2006 and 2007 is $1,465,000, or $457.59 per square foot. Of the 15 homes currently on the market, the median asking price is $505/square foot.

At the low end of the homes on the market, as determined by price per square foot, are 151 Beaver Pond Lane ($375.94/square foot, built in 1986), 229 Elk Park Road ($381.25/square foot, built in 1989), 707 Fox Farm Road ($432.83/square foot, built in 1976) and, 694 Fox Farm Lane ($447.03/square foot, built in 2004 and remodeled in 2007). Prices can vary greatly in Ski Ranches; one reason is that as one of the region’s oldest subdivisions it has homes that were built in the 70s on through to today.

From there listing prices jump to the $500’s and up to $818/square foot for a home built in 2007.

Buyers looking for more space, bigger land and more affordable pricing need to take a closer look at Telluride Ski Ranches. Go to my website and compare the prices of newer homes in Ski Ranches with those in Telluride or Mountain Village. At the same time, be sure to take into consideration the age of the homes for sale. Several in Ski Ranches are 20+ years old...but there are hidden gems in this cool subdivision that allows horses and dogs.

Telluride Ski Ranches 2007 Summary

Telluride Ski Ranches 2007 Quick Summary

A short distance from Mountain Village, Ski Ranches is a beautiful subdivision that offer mountain views, bigger lots that afford a homeowner real privacy, and opportunities to have horses and dogs.

Sales of Ski Ranches homes have been slow in the past few years as compared to some other sectors of the market yet closer inspection reveals that fairly priced homes are still moving (and homes that are boldly priced are taking longer to sell).

While the number of homes sold was flat in 2007 as compared to 2006 (five sold in each year), the median selling price for a Ski Ranches home increased by 11%. With the increase in price came a drop in median days on the market, from 310 to 203.The rise in the median selling price and drop in the median days on the market are positives, as sales in Ski Ranches have been relatively stagnant for several years.

Since there were so few land sales, monitoring the average sold price is more realistic than looking at the median sold price. The average sold price declined 13% as compared to 2006, with an average sold price from $643,750 to a price of $562,250

The median days on market for a Ski Ranches lot rose substantially from 137 to 257 days.

In this slower market, homes that are fairly priced will sell, and sellers who want to reach for the stars will likely have to wait longer.