Telluride Real Estate Blog

Telluride Real Estate Market Update - Vacant Land and Bank Sales Year End 2011

2012-01-31T16:29:00.003-07:00

Bank Owned/Short Sales
At least 38 properties (homes, condos, land) in the immediate region that sold in 2011 were either bank owned or short sale and at least another couple dozen of distressed sales not easily identified.

Vacant Land Sales
Vacant land sales are beginning to show signs of life (36 sold in 2011) with a fair amount being distressed, highly motivated situations. Nearly all sales were below $1 million with most below $500,000. The market is still at the point where it is generally less expensive to buy improved property than to buy raw land and build, although land for sale in Ski Ranches, Elk Run and on the golf course side of Mountain Village are beginning to break that trend by offering compelling prices.

Telluride Real Estate - 2011 Year End Condo Market Update

2012-01-31T14:44:00.003-07:00

Telluride:
Currently there are 109 condos for sale in the town of Telluride. In 2011, a total
of 42 condos sold in town. 22 of those that sold were asking 600,000+, of which 11 of them sold for $1+ million. Only one condo sold so far this winter asking $1+ million. Looking back an additional 12 months to 2010 shows another 8 condos sold in town for over $1 million. There are no other $1+ million condo sales in town so far this winter, although one $1+ million condo at the Willow is under contract as are ninecondos at the luxury ski-in/out development Element 52. The remaining six condos under contract have asking prices ranging from $158,400 to $795,000. Four of those contracts are either bank owned or short sale.

In 2011, average sold price for a condo in town was $1,122,478; median sold price was $663,750 with an average days on market of 474 days. 38 free market condos sold in town in 2011. For 2010, the average sold price for a condo in town was $825,754; median sold price was $560,000 with an average days on market of 221 days. 42 free market condos in town sold in 2010.

Mountain Village:
Currently there are 151 condos for sale in Mountain Village. In 2011, a total of 75 condos sold in Mountain Village totaling $46.8 million compared to a total of 44 condos in 2010 for $50.4 million. Fifty of those that sold last year were asking $500,000 or less, 42 which were Peaks hotel rooms. Fourteen $1+ million condos sold in the Mountain Village in 2011 and just two were bank-owned/short sale. Looking back an additional 12 months to 2010 shows another 24 condos sold in Mountain Village for over $1 million. Currently there are 19 condos under contract, 17 of which have asking prices less than $500,000 and the other two asking $2.775m each. Five of those contracts are either bank owned or short sale, including the two condos at $2.775m.

In 2011, average sales price for a condo in Mountain Village was $557,123; median price was $201,875 with an average days on market of 364 days. 73 free market condos sold (including 42 Peaks hotel rooms that brought the averages down). For 2010, average sales price for a condo in Mountain Village was $1,197,621; median price was $1,120,000 with an average days on market of 282 days. 39 free market condos sold.

Of the 111 condos that sold in town or Mountain Village in 2011, 86 sold for $1m or less. 15 sold between $1m-$2m (12 of those in Mountain Village). 6 sold between $2m-$3m. 4 sold for $3+m.

For condo buyers, the best luxury condo buying opportunities in many years should be happening in the next 12 months as several condo developments that are currently overpriced or off the market reset their pricing to the new, entrenched realities of this era. This pricing pressure will continue until significant price adjustments are made in order for more buyers to be comfortable making a purchase. A few astute sellers have already taken that into account with their asking prices. There continues to be compelling purchase opportunities for a few condos in both towns (in most price segments) with asking prices set to today’s market.

Telluride Single Family Home Market Update For 2011

2012-01-31T14:38:00.003-07:00

Telluride Real Estate – Single Family Home Market Update For Year End 2011

Town of Telluride: Currently there are 64 homes for sale in the town of Telluride including nine asking less than $1 million and over half of them asking less than $2 million. For 2010, the average sold price for a home in town was $2.127m; median sold price was $1.275m with an average days on market of 298 days and 26 homes in town sold (low sold price was $700,000 and high was $9.9 million). In 2011, average sold price for a home in town was $1.989m; median sold price was $1.486m with an average days on market of 523 days and 21 homes in town sold (low sold price was $550,000 and high was $5.5 million). Currently two homes in town are under contract in the $2 million range, both are short sales.

Mountain Village: Two homes in Mountain Village recently contracted over the holidays. One is asking $14.9 million for a ski-in/out 14,500 square foot home on 4 acres. The other is asking $7.9 million for 13,800 square feet and is a distressed sale having been under serious negotiations for over a year between this particular buyer and the seller and his bank. That latter one is expected to close somewhere near $500/ft. Both have been on the market for around 2 years. For 2010, average sales price for a home in Mountain Village was $4.281m; median price was $3.066m with an average days on market of 468 days and 20 homes sold. In 2011, average sales price for a home in Mountain Village was $2.622m; median price was $2.5m with an average days on market of 681 days and 9 homes sold.

Ski Ranches and Aldasoro: Sales of homes in the Ski Ranches subdivision located just south of Mountain Village was another bright spot in the market, actually outpacing sales of homes in Mountain Village for the first time ever. Aldasoro is taking a bit of a breather with two homes sold in 2011 after a strong run of home sales in the couple years before then.

Highest End Sold Homes:
Currently there are 38 homes for sale in the immediate area asking $5 million or more. Of those, 24 are located in Mountain Village. Two are located Down Valley. One home is located in Sunnyside Ranch; four in/near Gray Head; one in Aldasoro above the airport; five in the town of Telluride and one in Elk Run. Of all of these homes, 7 of them are on 10+ acres.

In the past 12 months, two homes have sold in the entire region for $5+ million, one in Mountain Village asking $6,995,000 that sold for $5.2 million last May (5 bdrms/6 baths/8,179 square feet/1 acre of land) and one in town originally asking almost $10 million, then reducing its asking price to $6,950,000 and then selling in September for $5.5 million (6 bdrm/7 bath/5,237 square feet/0.15 acres). Looking back an additional 12 months to 2010 shows another 13 homes sold in the region for over $5 million.

Of the 66 homes that sold in the immediate region in 2011 (not the West End, Ridgway or beyond), 31 sold for $1m or less. 16 sold between $1m-$2m. 12 sold between $2m-$3m. 3 sold between $3m-$4m. 4 sold between $4.4m - $7.25m.

2011 Telluride Real Estate Market Update

2012-01-31T14:14:00.007-07:00

Greetings from Telluride (with 30+ inches of new snow in the ten days!),

In 2011, the San Miguel County real estate market saw a 17% increase in number of sales and a 22% decrease in dollar volume , year over year. The change in dollar volume/sales for the town of Telluride was a 7% increase in sales and a 7% decrease in dollar volume, year over year. For the Mountain Village, the change was a 22% increase in number of sales (because of fractional and Peaks hotel room sales)but a decrease of 40% in dollar volume. The region had its lowest level of sales in terms of dollar volume since 1997! The most vulnerable market segments are large ski homes in Mountain Village that, with limited recent exception, are not selling because they are seemingly overpriced; as well as many luxury condos in town and Mountain Village (although two Castellinas (ski-in/out near MV core) asking $2.775m each contracted in past ten days. At the same time, parts of the market have stabilized. The good news is that the number of transactions occurring in San Miguel County in 2011 is the best since 2007.

Since the downturn for Telluride in 2008, there is an overwhelming sense of a sputtering market with never-to-be-believed or who-would-have-thought new realities. Having a measured, informed perspective moving forward is prudent. Fortunately Telluride real estate sales have been steady this year with nearly an equal number of transactions occurring during each half of 2011. Not bad considering unexpected, major global events (earthquakes, tsunami, Euro crisis etc) caused everyone to pause.

In general, market prices have been reset by 20-40% while others have yet to re-establish themselves (nice ski homes in Mountain Village are moribund; property sales on both the nearby and outlying mesas are slim, luxury condos are only selling when priced to today’s market). Much depends on the property, unique circumstances and motivations in order for a property to sell. At the same time, many properties are still subject to continued pricing pressures.

The Telluride region is at historically high levels of inventory for sale in the marketplace and there are many more properties for sale than there are buyers. Over supply and under demand equals pricing pressure. It’s a great time to be a buyer, especially with cash or being qualified with attractive financing terms. About three quarters of the transactions I handled last year were cash buyers. There is certainly a sense that “catching the bottom” is driving some buyers. Others continue to espouse a “wait and see” attitude. There are yet other buyers who aren’t paying bank-owned prices but still are finding value for properties that meet their objectives.

Unless motivated by a property they can’t live without at a price that demonstrates real value, serious buyers will move onto the next property or wait until another property that interests them comes on the market. At the same time, there are several buyers who are ready to strike based on the few multiple offer situations I have been involved with this past year. There are also sellers wanting to sell who are waiting for market conditions to improve, yet the conditions aren’t getting better and, in certain market segments, likely to drop further. Any solid hint of price firmness might cause these sideline sellers to flood the market and re-exert downward pricing pressure. In the luxury sector of Telluride, price firmness is unlikely to occur in the next 12 months or at least until inventory levels subside. I expected meaningful price reductions in the luxury market to have occurred by now but they haven’t. There haven’t been many price reductions since the start of ski season with high-end properties either.

The uncertain U.S. financial and political picture along with a tenuous global economic situation has created a sense of vulnerability and a stressed global psyche. Conflicting, topsy turvy, volatile data being reported every
month by various governments and research firms is not generating confidence around the globe. Who should
we believe except our own intuition in determining how these global matters will affect our life? A general mood of fragility and lack of solid conviction that we’re going to pull out of this in a positive manner remains in collective minds.

Heading into 2012, there are certainly positive signs locally, nationally and globally. Locally, there are 42 properties currently under contract ranging in price from $69,500 for a fractional in town to $14.9
million for a home in Mountain Village according to the Telluride Multiple Listing Service. 1100+ acres of the Sound of Music ranch on Wilson Mesa recently contracted before Christmas, asking $18.8
million, by a buyer looking to park cash – certainly a positive sign if it sells. And there are several E52 contracts idling and hopefully closing soon. Nationally, the unemployment rate is falling, the U.S. is out of Iraq and the stock market is at promising levels. As long as various leaders around the globe skillfully handle their current situations as well as the unforeseen events bound to surface this year, the global psyche should firm up.

For a seller, if a buyer perceives the property is priced mark-to-market, the property stands a reasonable likelihood of selling in 3 – 12 months with perfect conditions (i.e. all cash buyer or well-qualified buyer working with a reasonable lender, a supportive appraisal and a skilled underwriter). Otherwise they will become part of the overflowing properties for sale with small chance of selling and wasting years on the market. At some point in the selling process, other factors in one’s life -- such as the time value of money, the costs of maintaining a property, the opportunity costs of using money for better opportunities, and the importance of “getting on with it” in order to move into another life phase – should create strong enough reasons to get a seller to sell at a compelling price for a buyer.

Please see the subsequent blog posts for specifics on the home, condo and land components of the 2011 year end Telluride real estate market stats.

TELLURIDE, CO PROPERTY UPDATE CHRISTMAS

2012-01-03T17:10:00.001-07:00

So far over the Christmas holidays Eight properties have gone under contract - 1 deed restricted condo, 3 condos in the Town of Telluride, 1 home in Mountain Village (asking $14.9m!), and three fractionals.

Have a great New Year!

Telluride in Forbes Top 5 Ski Resorts In U.S.

2011-12-22T12:03:00.003-07:00

Greetings from Telluride - where it is currently snowing (2-6 inches forecast by tomorrow!)

Hat's off to Forbes Magazine for coming up with a list of top 5 ski resorts in the United States that is based on real skiing and real ski towns (except for one) rather than how many ski valets there are to carry your skis! It is better, more comprehensive review than magazines like Ski and Skiing. Be sure to read the reader comments as many speak poignantly of Telluride.

READ MORE:
http://www.forbes.com/sites/christophersteiner/2011/12/13/the-top-5-ski-resorts-in-the-united-states/

According to U.S. Ski & Snowboard Team staff at last weekend's snowboard World Cup here, Telluride has the best snow in the United States (along with Wolf Creek, Silverton and Taos). I can vouch that the conditions are surprisingly good and this next storm cycle comes just in time for the Christmas crowd.

Merry Christmas and Happy New Year!
Mike

Neighborhood Report: More Homes Selling In Ski Ranches Than Mountain Village This Year

2011-11-03T09:10:00.002-06:00

Recognizing a remarkable opening for value in the Telluride area, eleven families have purchased homes in Ski Ranches so far this year. Located five minutes south of the Mountain Village, Ski Ranches was created by ski area founder Joe Zoline in 1972. It is comprised of approximately 220 parcels, many of which have already been built upon. The neighborhood enjoys a rich mix of long-time locals and part-time residents, both of whom enjoy the large expanses of space, the privacy of each lot and the close proximity to town and Mountain Village. Currently home prices are roughly half of what one might pay in Mountain Village or town on a price per foot basis. What is sacrficed in convenience is easily compensated with several benefits including parcels averaging about 1 1/2 acres each, many with views of the Wilson and/or the Sneffels mountain ranges. Design regulations are less stringent (more economic) than either Telluride or Mountain Village. A few parks and access points to open space also make Ski Ranches a desirable place to live. Even horses are allowed although the parcels are too small for practical purposes unless the lot is sunny and near open meadows. Another nice bonus for buyers is that there is no real estate transfer tax in Ski Ranches. In most other subdivisions in the area, there is a 3% real estate transfer tax/assessment that buyers pay, based on the purchase price of the property.

Currently there are 18 homes for sale in Ski Ranches ranging in price from $795,000 to $2,495,000. Year to date, eleven Ski Ranches homes have sold. More homes have sold in Ski Ranches this year than in Mountain Village and the number of sales is about double the historical number of annual homes sales in Ski Ranches (usually 5-7 homes sell in Ski Ranches in any given year).That's a remarkable statistic until one delves into a current cost-benefit analysis of Mountain Village versus Ski Ranches. The average sold price in Ski Ranches year to date is a little over $1 million and an average price per square foot of $301. The most expensive price per square foot paid year to date was $436/foot for a high-end distressed Ski Ranch home on 1.5 acres on Spruce Way. The least expensive price per square foot paid year to date was $205/foot for a bank-owned home on Ridge Road. Keep in mind that quality of the land and the improvements substantially impact property values and price per foot. Finally, it's important to note there are some compelling values in Mountain Village too, but there are many homes there that haven't adjusted their asking prices at all or enough to compel buyers to make offers. Also, the price range for homes in Mountain Village is significantly broader than Ski Ranches but if you are looking in the $3 million or less range, taking a look at homes in Ski Ranches would be a good idea.

If you have considered purchasing in the Telluride area and have not considered Ski Ranches, take a step back and re-evaluate whether or not it is a viable option for your family. There are many examples of part-timers in Ski Ranches who originally thought they would be buying in the towns of Telluride and Mountain Village. Also, the more that families have visited here, the more comfortable they are owning on the "outskirts" of both towns. Owners include oil & gas executives, retired military officers (like General Norman Schwarzkopf), artists and musicians, restauranteurs, lawyers, doctors, entrepreneurs and many others who are very happy they own an attractive slice of Telluride.

Ski Ranches Single Family Sold
Year Average Sold Price % Year to Year Avg $/SF % Year to Year
2006 $1,365,000 n/a $458 n/a
2007 $1,510,000 +10.6% $531 +15.9%
2008 $1,439,500 -4.7% $462 -13.0%
2009 $575,000 -60.1% $178 -61.5%
2010 $1,384,317 +140.8% $359 +101.7%
2011 YTD $1,012,955 -26.8% $301 -16.2%
Includes all sales found in Telluride MLS.
The information contained in this spreadsheet is from reliable sources but is not guaranteed to be completely accurate. Further investigation may be necessary.

Jet Luxury Resorts Goes Mountain High

2011-10-15T10:16:00.004-06:00

October 11, 2011 (MMD Newswire) - - High-end Hotel Management Company adds exclusive Mountain Lodge Telluride Ski Resort in Colorado to their collection of 4 and 5 star resorts.

Jet Luxury Resorts, the premiere luxury Resort and Hotel Management Company, is proud to announce the addition of the iconic Mountain Lodge ski resort in Telluride, Colorado to their expanding roster of 4 and 5 star resorts nationwide. The Mountain Lodge marks the 6th addition of properties this year alone, following the Fontainebleau, the Gansevoort and the Mondrian Hotel in Miami and the Setai Fifth Avenue hotel in New York.

Jet Luxury Resorts is the leading International third party hotel management company and is one of the fastest growing companies currently in the hospitality industry. The company's advantages include maximizing owner's rental revenue through an award winning website, state of the art reservation system and prolific, viral marketing campaigns and favorable splits. Jet Luxury Resorts is also the only third party management company to offer the Jet Platinum Program where owners may take advantage of two free room nights each month at select Jet Luxury Properties nationwide.

The Mountain Lodge in Telluride, Colorado offers slope-side convenience, upscale amenities and gracious service. Completing the ultimate Telluride ski experience, the resort is located in the contemporary Mountain Village resort community midway up Telluride Mountain. Surrounded by panoramic views of the majestic San Juan Mountains, the hotel features three log-and-stone buildings and a main lodge, whose tremendous lobby is warmed by an immense river-rock fireplace. Gleaming with rich leather and rustic Western elegance, the lobby also features the iconic Tavern Bar.

A jewel in any season, the Mountain Lodge offers on-site, heated underground parking, concierge services and daily housekeeping, an outdoor deck with heated pool and Jacuzzi, exercise and steam rooms, ski lockers and storage and complimentary wireless internet service throughout the resort.

Rates and availability can be found at www.jetluxuryresorts.com

Or by calling (877) 538-7389 for a real time quote.

About Jet Luxury Resorts:

Jet Luxury Resorts is the premiere international 4 and 5 star Resort Management Company that provides truly affordable luxury. Jet Luxury Resorts is able to offer exclusive, luxurious yet affordable inventory to the rental community through honest, lucrative and dedicated service to hotel, estate and fractional owners. Jet Luxury Resorts destinations can be found worldwide including New York, NY, Aspen and Telluride, CO, Las Vegas, NV, Malibu, CA, Italy, Costa Rica, Miami, FL and Honolulu, HI. Find out more at http://www.jetluxuryresorts.com/

If you'd like more information about this topic or to schedule an interview with Richard Brosal, President of Jet Luxury Resorts, please call Shana Gismondi at 877-538-7370 Ext. 132. Jet Luxury Resorts can be found on Twitter (Jetset9) and Facebook.

Telluride Town council embraces idea of science institute

2011-10-13T09:52:00.004-06:00

Naisbitt: ‘My hope is that we can build this as a community’

By Katie Klingsporn
Associate Editor, Telluride Daily Planet

Published: Saturday, October 8, 2011 6:13 AM CDT
Each year, Telluride draws bluegrass bands and beer brewers, Hollywood filmmakers, wine aficionados and legions of skiers with its summer festivals and ski season.

It also draws a less conspicuous sector of visitors: top scientists.

Marked only by name badges, hundreds of engineers, physicists, climatologists, biochemists, mathematicians and nanoscientists from around the world come to town each summer for conferences, workshops and meetings facilitated by the Telluride Science Research Center.

TSRC started back in 1984 with one workshop and 18 scientists, but it has grown exponentially in recent years. This summer, TSRC facilitated 33 meetings and conferences that drew nearly 1,000 scientists to town.
Prompted by the growth, TSRC Executive Director Nana Naisbitt is looking to expand by building a facility that she hopes puts Telluride on the map as an international science destination.

“Telluride can become synonymous with great science,” she said. “The potential is pretty limitless.”

Naisbitt has hatched a plan to build the Telluride Science Research Center. It is envisioned as a 30,000-square-foot campus-style facility, with an auditorium, labs and classrooms for science conferences, events and research on groundbreaking solar technology. TSRC is eyeing a handful of sites, but it is still in the early stages of planning.

Before it launches fully into the fundraising phase, Naisbitt is hoping to gather community support. This week, she presented the plan to the Telluride Town Council, which embraced it enthusiastically.

“I personally can think of nothing more exciting than Telluride becoming one of the mind capitals of the world,” said council member Thom Carnevale.

Council member Bob Saunders echoed that.

“I think this is a fabulous thing, and if we can make this happen it’ll certainly be something I would be proud of forever,” he said.

It’s a big vision with a big price tag — it’s estimated that $25 million will be needed to build the facility.

But it’s something that has come out of necessity, Naisbitt said.

Right now, TSRC is housed in the Telluride Intermediate School. It’s a great spot, but it’s only available for nine weeks of the summer. Also, the Palm Theatre is too spacious for many of the roughly 100-person conferences that TSRC holds. It’s gotten to the point where TSRC has lost conferences because it doesn’t have the right space.

But the interest is certainly growing. This year, TSRC hosted 972 scientists, who brought some 455 family members to town to stay on average of 5.5 nights each, Naisbitt said. Scientists have come from 68 countries and represented more than 400 institutions and 50 branches of science.

“What we’re seeing is just a huge demand coupled with the limitation of access only to the summer and the limitation for not having an ideal facility for any of this,” Naisbitt said. “It’s a natural progression. There’s a need. There’s a demand. And there’s an opportunity.”

Naisbitt thinks the Telluride Science Research Facility could become a world-class facility on par with Los Alamos or Woods Hole.

The idea has garnered the attention of Solar Fuels Institute, which is dedicated to developing groundbreaking solar energy technology. Solar Fuels is interested in utilizing the facility for research that could yield new and better ways of capturing and using solar energy. The idea would be that Solar Fuels’ administrative headquarters would be at Northwestern University and its international headquarters would be in Telluride.

“Telluride could become known as a place where solutions to pressing environmental problems are found,” she said.

The facility is considering a focus on other disciplines as well, such as green chemistry and evolutionary medicines.

The auditorium could also be used by other local non-profits.

Naisbitt said she is hoping to drum up support in all sectors of the community — even a $5 donation is welcome, she said.

“This really isn’t so much about what TSRC can bring to the community, but it’s more about what can we build together,” she said.

Carnevale said he sees the potential for economic diversification and it’s an incredible opportunity.

“I find it one of the most exciting things I’ve heard in the last 20 years,” he said.

“It’s gotten to a point where it makes all the sense in the world,” said Mayor Stu Fraser.

The council opted to draft a resolution of support for the project.

Regional Sustainability Coordinator Kris Holstrom said it’s a step in the right direction.

“I can’t think of a better thing to move forward,” she said. “We need these kinds of solutions in our lives.”

In the US, 2 housing markets and 2 directions By MICHELLE CONLIN, The Associated Press

2011-09-24T08:53:00.001-06:00

In America, it's starting to feel as if there are two housing markets. One for the rich and one for everyone else.

Consider foreclosure-ravaged Detroit. In the historic Green Acres district, a haven for hipsters, a pristine, three-bedroom brick Tudor recently sold for $6,000 -- about what a buyer would have paid during the Great Depression.

Yet just 15 miles away, in the posh suburban enclave of Birmingham, bidding wars are back. Multi-million-dollar mansions are selling quickly. Sales this August were up 21 percent from the previous year. The country club has ended its stealth discounts on new memberships. And Main Street's retail storefronts are full.

"We're getting more showings, more offers and more sales," says Ronni Keating, a real estate agent with Sotheby's International.

Think of this housing market as bipolar. In the luxury sector, the recession is a memory and sales and prices are rising. But everywhere else, the market is moving sideways or getting worse.

In the housing market inhabited by most Americans, prices have fallen 30 percent or more since the peak in 2007. That's a steeper decline than during the Depression. Some people have had their homes on the market for a year without a single offer.

Almost a quarter of American homeowners owe more on their house than it's worth. Another quarter have less than 20 percent equity. About half of homeowners couldn't get a mortgage if they applied today, says Paul Dales, senior U.S. economist for Capital Economics.

But then there is the other housing market, occupied by 1.5 percent of the U.S. population, according to Zillow.com. The one with outdoor kitchens and in-home spas; with his-and-her boudoirs and closets the size of starter houses. The one that is not local but global, with international buyers bidding in all cash. And where the gyrations of the stock market are cause for conversation, not cutting expenses.

In this land of luxury properties, the Great Recession seems over. Prices of $1 million-plus properties have risen 0.7 percent since February, according to Zillow. Prices of houses under $1 million have fallen more than 1.5 percent.

Normally, these two segments of the housing market rise and fall together. But now, they're moving in opposite directions.

"Luxury is the best performing segment of the housing market right now," says Zillow.com chief economist Stan Humphries.

After every recession since World War II, housing has led the economic recovery. Not this time. The renewed vitality in the comparatively small market for luxury homes is not enough to power a full-blown recovery. This bifurcation in the market is yet another reason Michelle Meyer, the chief economist at Bank of America Merrill Lynch, says her housing outlook is "increasingly downbeat."

The phenomenon is not limited to real estate. You can see the same split in other gauges of the economy. Sales at Saks versus Walmart. Pay on Wall Street versus Main Street. Corporate profits versus family balance sheets.

The divide is also making credit a perk of the rich. Mortgage rates are the lowest in decades. But what good are absurdly cheap rates if you can't get a mortgage? The banks aren't granting credit to anyone "who even has a smudge on their application," says Jonathan Miller, founder of real estate consulting firm Miller Samuel. Applications for new mortgages languish at 10-year lows.

Across the country, prices on high-end homes fell after the subprime crash in the fall of 2008. The price on the $25 million mansion became $20 million, then $15 million. Such "bargains" are pushing more luxury buyers to commit to more deals.

There are other factors, too. In Detroit, a recovering auto industry is helping propel high-end sales. All those car executives who have helped turnaround the American auto industry used to rent. Now they are using their performance bonuses to buy homes.

Wall Street's recovery has brought back the market for mansions in the Hamptons, on Long Island, where the number of closings has returned to the 2007 level, and for luxury co-ops in New York City. And because of social-network riches in Silicon Valley, twice as many homes have sold for $5 million or more this year than last.

But in the other housing market, an apartment tower built in 2007 in San Jose, Calif., recently converted to all-rental. The building had not sold a single unit. In Miami, a city that exemplifies the foreclosure epidemic, idled cranes dot the skyline. Unemployment shot up again this summer from 12 percent to 14 percent, a level not seen since the energy crisis in 1973. There are so many two-bedroom condos in gated communities with golf courses, private pools and rustic jogging paths that you can pick one up for $25,000, 66 percent off the price five years ago. But luxury condos priced at $1 million or more are selling as rapidly as they did during the boom.

"In the 20 years that I have been in South Florida real estate, I have never seen a greater divide between those who have and those who have not," says Peter Zalewski, founder of the real estate firm Condo Vultures.

One big factor in the divide is foreign cash, at least in the world of property. For international buyers, U.S. real estate is the new undervalued asset, the new fire sale, and foreigners are big buyers of luxury properties. International clients bought $82 billion worth of U.S. residential real estate last year, up from $66 billion in 2009. In states like Florida, international buyers account for a third of purchases, up from 10 percent in 2007.

"Luxury properties are drawing buyers from all over the world," says CoreLogic's chief economist, Mark Fleming.

That's true even in such seemingly all-American enclaves as Detroit. Step off a plane at the city's futuristic new airport and the internationalization of the Motor City is obvious. All the signs -- as well as the announcements on the public address system -- are in both Chinese and English.

In the middle of the terminal sits a five-star Westin Hotel, the better to serve the global executive class that jets in and out as the U.S. auto industry regains its footing. Many of them are buying in Birmingham, where home values are up 3.1 percent this year, according to Zillow.com.

In Birmingham, local store owners say business is as good as it was during the boom years last decade. Chasta Fase, who owns Old World Olive Press, a boutique shop that sells $30 bottles of olive oil from all around the world says business "has been just awesome" since she opened her doors in November. And since April, she says, customers have been spending more than ever.

Real estate agent Keating says the same is happening to her sales. In June, she sold a lakefront mansion in Birmingham to a Russian entrepreneur. He had purchased a local steel company that he plans to turn around.

"They're coming from all over," says Keating, who for the past 30 years has sold most of the car barons their homes, from Roger Smith, the former CEO of General Motors, to former Chrysler CEO Bob Nardelli. "I don't know who any of them are anymore."

Credit: The Associated Press

Mike's Meaningful Real Estate Ad

2011-09-14T11:48:00.003-06:00

Here is the latest ad I have running in local media. Let me know what you think.

Study Shows Sharp Drop in Jobs in San Miguel and Ouray Counties

2011-09-09T10:39:00.002-06:00

Watch Newspapers- Sep 07, 2011
SAN MIGUEL/OURAY COUNTIES – A housing needs assessment for San Miguel and Ouray Counties has found that both employment and income have dropped sharply in the region since the start of the Great Recession in 2007.

Nearly 42 percent of the households in San Miguel County (1,450 households) and 39 percent in Ouray County (789 households) report that their income has decreased since 2007-2008, according to the study produced by RRC Consulting and Rees Associates and administered by the San Miguel Regional Housing Authority on behalf of San Miguel County.

The study also found that since 2007, Ouray County lost 573 jobs, which equated to a decrease of 20 percent. San Miguel County lost 1,155 jobs, a decrease of 15.5 percent.

The study was conducted to enable planning of affordable housing in the region and to update assessments of the number and type of housing options needed in the region. The study also sought to define the impacts of the commuter population on the communities in the region.

The study includes the results from surveys of 1,190 households, 123 additional employees who commute to work and 88 employers representing over 3,000 employees. It also contains results from 35 interviews of key informants including property managers, realtors, lenders and transit providers.

Approximately 450 employees travel into Ouray County from homes outside of the county and 745 employees commute into San Miguel County; however, the majority of commuters do not want to move.

Among other findings contained in the report:

*The rate of residential growth between 2000 and 2010 was much higher in Ouray County (44 percent) than in San Miguel County (28 percent).

*There are 1,122 housing units that are deed- or occupancy-restricted in San Miguel County, representing 34.4 percent of total occupied units in the county.

*Home sales dropped 62 percent overall from their peak in 2007/08 to their low in 2009. The market rebounded somewhat in 2010 with the number of sales increasing 36 percent overall in the two-county region, with growth being the strongest in San Miguel County.

*A majority of residents in both counties feel that the problem of finding affordable housing for persons who work in the region is either the most critical or one of the more serious problems facing the area.

The meetings scheduled for next Wednesday, Sept. 14, in Telluride at the Wilkinson Public Library from 1:30 to 3 p.m., and on Thursday, Sept 15 in Ridgway at the Ridgway Town Hall from 10:30 a.m. to noon will be the only opportunity for members of the public to hear directly from the consultants who produced the report.

The full report will be published online at www.smrha.org on Monday.

Read more: Watch Newspapers

Mountain Village Home Update

2011-09-06T08:52:00.000-06:00

5 homes in Mountain Village are under contract with an average of $456/ft asking price. Two on golf course (avg asking $638 - Arizona St and AJ drive), three on ski side. All contracted in past six weeks. All in the $2m +/- range. ONLY THREE free market homes have sold since Jan 1, avg $/ft = $486/ft. Two on golf course that averaged $359/ft. Promising activity in the right price band and location.

Low Lending Rates & Quick Telluride Market Update

2011-06-21T15:17:00.000-06:00

Greetings from Telluride where it snowed two inches last night and this morning!

A lending source recently informed me of excellent rates that you should review to see if it is worth refinancing any property you own here or elsewhere. If you would like me to put you in touch with this company please let me know.

5/1 ARMs at 2.75%
5/1 jumbo ARM at 3.125%
30yr fixed primary home 4.25%
30yr fixed second home 4.50%.
No escrows and no pre payment penalties on any of them.....

Beyond that, the Telluride real estate market in general has seen some decent sales activity especially in the town of Telluride, Ski Ranches and Aldasoro. Foreclosures and short sales continue to shadow the region but they represent less than 1% of the total composition of properties in San Miguel County. There are still excellent values to be found in most price bands and neighborhoods, especially in Mountain Village where many ski-in/out homes are ripe for price concessions and several condos are priced extraordinarily well (Mountain Lodge, The Peaks, Bear Creek Lodge to name a few).

Currently one home is under contract in Mountain Village with only two homes sold since January 1st. Five homes are under contract in the town of Telluride with ten sold since January 1st. Two homes are under contract in Ski Ranches with seven sold since January 1st. Two homes have sold in Aldasoro Ranch so far this year.

There are 13 condos in town currently under contract with 22 sold since January 1. There are 8 condos in Mountain Village currently under contract (six of which are hotel rooms at the Peaks Hotel in the $175k range) with 51 sold since January 1 (39 of those are Peaks hotel rooms selling in the $175k range).

Let me know if you have any specific questions that I can answer. Enjoy your summer.

Element 52 Video

2011-04-19T10:34:00.000-06:00

Element 52 in Telluride, Colorado from Jeff Scholl on Vimeo.

Telluride Market Update

2011-04-19T10:17:00.003-06:00

WSJ.com-The Most Expensive Town in America

2011-03-07T09:41:00.003-07:00

Here is an interesting article about luxury home purchases in Aspen remaining strong. Telluride is mentioned at the very end.

NANCY KEATES
Aspen, Colo.

The lowest-priced single-family home on the market in Aspen is listed for $559,000. It's located in a trailer park.

Love to ski and have $48.5 million burning a hole in your pocket? Then a fabulous mansion in Aspen adjacent to the ski slopes that just hit the market might be perfect for you. Candace Jackson has details.
While most housing markets in the rest of the country continue to struggle with anemic demand and foreclosures—and sales at many other luxury ski resorts are still sluggish—Aspen has forged its own orbit. The average home price in this mountain town has increased over the past four years, to $6 million in 2010 from $5.4 million in 2006, according to multiple-listings data. The median price for single-family homes is now the highest in the country at $4.6 million, says San Francisco-based Altos Research, surpassing the Hamptons, Beverly Hills and Palm Beach.

Sales of luxury Aspen estates—the sorts of over-the-top places with leather walls and outdoor heated infinity pools—have remained remarkably healthy, thanks in part to foreign buyers. Of the 25 real-estate transactions recorded by Pitkin County for the week of Jan. 19 to 25, five were buyers from abroad, including three Australians and people from Turkey and Hong Kong.

Last month, a home in the Maroon Creek neighborhood with an indoor heated swimming pool, basketball court and outdoor hot tub overlooking a waterfall sold for $13 million. The buyer was Russian Alexander Zanadvorov, the 40-year-old owner of Sedmoi Kontinent, a chain of supermarkets.

With celebrity regulars like Lance Armstrong and Goldie Hawn, Aspen is an anointed stop on the international jet-set circuit, a place where the wealthy come to play and spend. Increasingly, they're putting down roots there.

"Aspen is like a small Manhattan," says Altunc Kumova, a financial services executive from Istanbul, Turkey, who bought a fractional condo at The Little Nell in January. "You can find almost all upscale brands for shopping and restaurants are excellent. Après-ski in Aspen is very glamorous."

Shawn O'Connor for the Wall Street Journal

Downtown Aspen
Last year, hedge-fund titan John Paulson paid $24.5 million for a 13,000-square-foot estate with a sandy beach, surrounding ponds, a 35-foot-wall of disappearing glass, views of the four ski mountains and a media room with leather seats. Chris Reyes of Chicago-based food and beer distributor Reyes Holdings paid $31.5 million for a 15,000-square-foot stone mansion with a gym, panoramic views, a caretaker's apartment and an eight-stall horse stable. According to public records, Paul Edgerley, a managing director of Bain Capital, bought an estate in the exclusive community of Starwood a couple of weeks ago. The estate sold for $19.8 million after less than three months on the market, says listing agent Brian Hazen.

A 90-acre Aspen estate just went on the market for $48.5 million, listed by Joshua Saslove of Joshua & Co. Known as Jigsaw Ranch, it includes two main houses, a guest house and a log cabin gatehouse. The 21,000-square-foot main house took nearly 15 years to complete and was designed to look like a perched village. The second main house is 11,000 square feet and has an entrance reached from a walking bridge across a creek.

Aspen hasn't missed the housing bust altogether: The number of homes sold last year was about half the level of 2006, and there have been foreclosures and notable fire sales, according to Mason Morse broker Tim Estin, who writes a regular economic analysis called the Estin Report. One house that sold for $16 million on Feb. 15, for example, was originally listed for $32 million.

Overall, though, recent signs have been promising. After a few rough years of declines, residential sales in Aspen grew 17% in gross dollar volume last year from 2009 and 23% in sales; there have been seven sales over $10 million in the past two months alone, says Andrew Ernemann of real-estate agency BJ Adams & Co. Last March, a 1,122-square-foot "quaint Victorian" two-bedroom shack on Main Street sold for $1 million.

Nationally, home prices in December were down more than 31% from their 2006 peak, according to the latest Standard & Poor's / Case-Shiller index, including a 4.1% fall in 2010.

Analysts point to numerous reasons why Aspen has held up so well. A small market where only 13% of land is able to be developed because of zoning laws and the mountainous landscape, it never suffered the overdevelopment now plaguing other areas. Aspen's distance from a major city and spotty air service help to keep away day tourists.
It's also emerged as a place where young professionals can find jobs, particularly at small private finance firms and at nonprofit organizations. The Aspen Young Professionals Association, started in 2003 with nine members, now has 257 active members on its event email list. Obermeyer Asset Management, an independent investment advisory started by the son of sporting-goods magnate Klaus Obermeyer, is one of the older local firms; since its start in 1998 it has gone from managing $50 million to $775 million in investments and from two staffers to nine staff members in two offices.

Burberry and Gucci are here, as are eateries like Rustique, with its locally sourced bistro food, and Montagna with its extensive wine selection. There are also music, film and food festivals, and the Aspen Art Museum is planning a new, 30,000-square-foot building designed by architect Shigeru Ban. The Aspen Institute, which brings in world leaders as speakers for its annual Ideas Festival, has also helped put the town on the international map.

In 2008 Russian billionaire Roman Abramovich paid $36 million for a 14,300-square-foot house on 200 acres. A couple living in London snapped up a $10.5 million ranch in July; a $16 million home with 40 acres and a theater, gym with sauna and steam, private guest apartment, elevator and six-car garage, was purchased by a family from New Zealand.

Chuck Frias, an Aspen developer and broker who has a newly built $24 million home on the market, says the weak dollar has drawn interest in the home from house-hunters in Canada, Australia and Italy; he sold a $7 million house to a Chilean family in December.

In the past few days Aspen agents have reported showing homes to potential buyers from as wide a range as Russia, Brazil, the Dominican Republic, Italy and Australia.

Ski Brasil, a Brazilian ski-tour operator with a winter presence in Aspen, runs three ads a week for 16 weeks in Portuguese in the local Aspen paper now. Eduardo Gaz, the company's director of operations, estimates some 20,000 Brazilians ski in Aspen every season, some of whom own homes (many of whom won't talk for tax reasons). Joshua & Co. real estate has taken out ads in Russian offering to show visitors around.

"I have a long list of Australian friends who are coming to visit," says Anna-Lisa Klettenberg, an artist and investor from Sydney who bought a condo at the luxury Gant Hotel. Ms. Klettenberg had been skiing in Aspen for over a decade; she decided in March to look to buy, put an offer on the condo that day, closed in May and was there for the month of July. She still owns her home in Sydney and has a summer place on Australia's Gold Coast in Queensland, but she plans to spend four months a year in Aspen now. She's on the national council of the Aspen Music Festival, a role that gets her invited to lots of parties and events.

Francesca and Sal Amery, a British international banker, have lived for the past 20 years in the Middle East, New Zealand, England, Tokyo, Hong Kong and Singapore and have owned homes in Malaysia, Singapore and England. They considered buying a home at a ski resort in Europe or New Zealand, but nothing measured up to Aspen when it came to meeting their checklist of wants: comfortable year-round living, a good education system, an airport, access to great medical facilities and an educated and diverse population.

"It is Adult Disney," says Ms. Amery.

—Olga Padorina and Candace Jackson contributed to this article.
Write to Nancy Keates at nancy.keates@wsj.com

How Other Ski Towns Stack Up

1. TELLURIDE, Colo.
This laid-back mountain town, a former silver-mining camp, is known for its craft brew and film festivals. It's notoriously hard to get to. The skiing is decent (its Palmyra Peak requires climbing), but it gets most of its raves for its views. It is a resort for all people—there are dive bars, expensive steak restaurants and everything in between. A day pass at Telluride Ski Resort maxes out at $98, and a season pass costs $1,950.

REGULARS: Tom Cruise and Katie Holmes, Christie Brinkley, Jerry Seinfeld

FOR SALE: A 3,100-square-foot fourbedroom, 4½ bath home with a guest house is asking $2.9 million.

2. PARK CITY, Utah
Since it's an easy drive from Salt Lake City, this town gets a lot of day tourists, which means a less exclusive, more downto-earth feel than Aspen (there have only been two sales over $10 million here ever). It can get overcrowded, however, making lift lines long and reservations difficult. Deer Valley is famous for ski valets and gourmet food. At Deer Valley Resort, a day pass costs $90 and a season pass, $1,630.

REGULARS: Josh Kelley, Katherine Heigl

FOR SALE: A 6,200-square-foot home two blocks from skiing with five bedrooms and seven baths, on 0.6 acres, is asking $3.2 million.

3. WHISTLER, British Columbia
The two mountains here have the biggest vertical ski drops in North America, and when temperatures are cold enough, the relentless moisture of the Pacific Northwest translates into mounds of light powder. The downside is frequent rain, which can make the slopes mushy. A day pass at Whistler Blackcomb maxes out at $95 and a season pass starts at $1,349.

REGULARS: Justin Timberlake, Halle Berry, Reese Witherspoon, Heidi Klum, Sarah Jessica Parker

FOR SALE: A 3,400-square-foot slope side home with six bedrooms and four baths, on 0.2 acre, is asking $2.9 million.

4. SUN VALLEY, Idaho
This conservative, remote town is more old-school, priding itself on its history as the oldest destination winter resort in the country. Nowadays it's a hiding place for business tycoons like Steve Wynn, Marshall Bennett and Herb Allen, whose annual Allen & Co. Sun Valley Conference brings in business power players. The mountains have exceptionally wide runs and are known for being well groomed. A day pass at Sun Valley Resort costs $83, and a season pass starts at $1,499.

REGULARS: Tom Hanks, Clint Eastwood, Demi Moore

FOR SALE: A 5,500-square-foot home with four bedrooms and 4½ baths, on 1.9 acres, is asking $3.4 million.

5. JACKSON HOLE, Wyo.
After Aspen, Jackson Hole is the next most expensive ski resort for home-buyers. The market has started to recover, especially the upper-end. It has more of cowboy image, attracting rugged CEO types and a back-country adventure crowd. The slopes are known for their black-diamond runs. A day pass at Jackson Hole Mountain Resort starts at $69; a season pass starts at $1,250.

REGULARS: Tiger Woods, Sandra Bullock

FOR SALE: A 7,700-square-foot house, with six bedrooms and six baths, on 1.1 acres near Jackson Hole is asking $2.9 million.
—Nancy Keates and Juliet Chung

Chapman Envisions Lift-Served Skiing in Bear Creek

2011-01-25T11:01:00.000-07:00

Chapman Envisions Lift-Served Skiing in Bear Creek
by Gus Jarvis
Jan 24, 2011

TELLURIDE – Tom Chapman will tell you that one of his main interests in purchasing mining claims in the upper Bear Creek Basin is to defend private property rights. But that doesn’t mean he wants the Telluride Ski Area to fail in becoming one of North America’s top destination resorts.

In fact, he says, it’s quite the opposite.

In an interview on Monday, Chapman discussed his vision for what Bear Creek could look like in the future. Completed by Chapman with Google Earth satellite technology, the vision lays out the possibilities of an expanded Telluride Ski Area that includes the construction of as many as five new lifts in Bear Creek.

The lifts of Chapman’s imagination include “Lift 17,” which terminates at the top of Palmyra Peak, where skiers could drop straight down Palmyra into Prospect Basin or drop into Lena Basin on the Bear Creek side.

Chapman also envisions a “Lift 18,” which would be a “short traversing side lift over the apex backside of the San Joaquin Masiff” that would “open eyes around the world for the possibilities of skiing on the backside of Bear Creek’s southernmost ridge. This side traverse lift would be constructed 40 feet on the backside of the ridge and would not be seen by summer hikers in upper Bear Creek and, because of the distance, it wouldn’t be seen from Ophir either.

From the top of “Lift 18,” there would be another short, behind the ridge, traversing lift, “Lift 19,” to the top of the ridge at T-12. This lift would, according to Chapman, “rocket the Telluride Ski Area into a top three or so rank in the world – right along with the blue-chip masterpieces in Europe.” To the east, “Lift 19” would open up vast backcountry opportunities, to the north skiers would be able to drop down toward Bridal Veil Falls.

To bring skiers out of Bear Creek, Chapman envisions the “Nellie Return Lift” that would function as a return lift to the bottom of Revelation Bowl’s existing Lift 15. This short lift, in combination with the two lifts into the Lena Lake area and Palmyra Peak would begin “a circuit opening many hundreds of acres of deep powder,” Chapman says. It would also eliminate the ski out down the Bear Creek Rd. to Telluride and avoid trespass issues over the Bear Creek Preserve.

In essence, Chapman’s vision is a massive expansion into upper Bear Creek that would be unparalleled by any other resort in North America.

Despite many residents’ often-expressed doubts that the ski area should be expanded into Bear Creek at all, Chapman said he believes that businesses in Telluride want to be prosperous and that if the Telluride Ski Area is prosperous, they will be as well.

“If Telluride is to be prosperous and happy, first of all the ski area has to be prosperous and happy,” Chapman said. “That’s how it works.”

The success of ski areas depend on public perception, Chapman said. “Are you changing for the better? Needless to say, that is where [Telski CEO Dave] Riley has been stepping up to the plate. He’s trying to bring Telluride back from being stagnant and from being the status quo.”

Chapman said his vision of Bear Creek might be easy to put into place in a perfect world where there was perfect agreement. In the real world, an agreement on something similar to what he envisions would make “the Telluride Ski Area one of the best in the world.”

The vision cannot be realized, he cautions, without the participation of those who own land in Bear Creek.

“They should be a part of this and not be excluded from prosperity,” Chapman said.

For now, Chapman said the Gold Hill Development Company, in which he is a partner, can only do what it has the right to do as the owner of its mining claims in Bear Creek. Those claims include the Modena, Gertrude and Little Bessie parcels in Delta Bowl. They were purchased for $246,000 last March. No plans for the claims have been ruled out, Chapman said and that GHDC’s principal partner Ron Curry is interested in opening a small silver mine on the claims. There is also the possibility of building a ski hut. Or even having a mine and a ski hut built together on the lands. The mine could turn out to be a bust and devalue the mining parcels and without a thriving ski industry, a ski hut could also turn out to be a bust. Maybe one or both could see success and raise the value of the parcels.

Either way, Chapman believes the market should drive the value of the land.

“I was hired to level the field of property rights,” Chapman said. “Mr. Curry is the principal and he makes all the decisions. He wants to mine. Personally, I don’t care what the value of the property is.”

The first step in calculating the fair market value of GHDC’s claims, Chapman said, is getting its access sorted out. A step in this direction was taken last Friday when the company filed a complaint against the Telluride Ski and Golf Co. seeking the right to utilize, maintain, repair and improve the Gold Hill Road, which crosses through the Telluride Ski Area and terminates on the Little Bessie Lode.

“Right now we have a road that goes to our property but we can’t put equipment on it to remove rocks for access,” Chapman said. “The next phase is looking at opening up that road.”

Along with that complaint, Chapman said the GHDC has also submitted a series of Colorado open record requests to the San Miguel Board of County Commissioners to review its application of the High Country Alpine Zone standards as they applied to the construction of the Tempter House, Revelation Bowl lifts, including all towers, the observation deck, and new roads.

“Bear Creek has had those standards for a long time,” Chapman said. “Why was it so easy for Telski to get variances in this zone for these uses, yet a land owner that wants to use their land is restricted? We intend to execute a series of these open record requests. The first one was executed last Tuesday.”

In 2002 Chapman, representing George Greenberg, the owner of the claims at the time, listed the parcels for sale at $180,000.

“I tried to sell the property but nobody responded. Nobody gave a rip about the properties. It’s hard to believe there is so much interest in them now,” Chapman said. “I always knew the potential of Bear Creek and I am absolutely flustered as to why anyone in the community didn’t step forward to acquire those lands.

“My vision for Telluride,” he continued, “is for everyone to be prosperous and happy. I am just saying that the landowners in Bear Creek should not be excluded.”

Citing the pending legal complaint, Riley said he could not comment.

Important Telluride Update

2011-01-18T12:23:00.001-07:00

Hello from Telluride,

Capella is shutting its doors on January 31st (please see link from the Telluride Watch below). I am not sure how this ultimately will pan out, but the sooner it does, the sooner the Mountain Village Core real estate market will further stabilize. The Peaks Hotel has made noticeable and meaningful changes in its physical structure and hotel operations along with significant sales of their hotel rooms/suites. There is also a growing handful of condos (5-6) in the village that have recently contracted. Other condos in the core are attractively priced and should contract before the end of ski season. Sales in January and February of homes and condos in the area are anticipated to be noticeably stronger than 12 months ago with the upcoming closings of over a dozen high-end luxury residences at Element 52 in town ($1,100+/ft) as well as several homes about to close in the next 2-6 weeks in Ski Ranches, Ames and other neighborhoods.

As long as we keep getting a steady flow of storms in the next couple weeks – or one big dump – the ski conditions will remain nice. Please let me know if I can provide you any further information as well as informing me of any types of properties you would like me to keep an eye out.

http://www.watchnewspapers.com/view/full_story/11041996/article-In-Foreclosure--Doors-to-Shut-at-Capella--Inn-at-Lost-Creek?instance=top_story

Best,

Mike

Mike Shimknois
Broker Associate/Telluride Properties, LLC
237 South Oak Street, Telluride, CO 81435
c 970.708.2157

NEW LISTING-694 Fox Farm Road, Telluride Ski Ranches

2010-12-13T14:01:00.001-07:00

Good sized 5 bedroom, 4.5 bathroom newer home in Ski Ranches designed for families. Three bedrooms and a flex room/kids play area on the ground level create the perfect kid setup. On the main level, enjoy mountain views, chef’s kitchen, family and diving rooms, a private heated back patio and a well-equipped solarium for a green thumb. Upstairs, the roomy master bedroom offer bird-perch views of the mountains. Separate deed-restricted 1 bedroom/1 bath apartment with full kitchen generates helpful income. Located just over five minutes to skiing, the gondola and the market.
www.694FoxFarmTelluride $1,049,000

Mountain Village Core Peaks/Luxury Condo Market Update

2010-10-30T09:54:00.001-06:00

Currently there are 173 today condos for sale in Mountain Village. Of those, 34 are priced between $2 million and $3 million with only one Peaks Penthouse currently on the market.

The Peaks hotel is currently in the process of undergoing some beautiful common area upgrades including a new Palmyra deck and Great Room deck as well as continual improvements to the guest experience

With regards to sales and under contract, there are 40 condos under contract in Mountain Village, 35 of which are Peaks condos priced between $135,000 and $400,000, one is a bank foreclosure and the other four are properties listed at $1.1 million or above. Since January 1st, six condos have sold in the MV core.

YTD (through September 2010) just over $260 million of real estate has sold YTD in the county vs $150 million through September 2009. This is positive news for the Telluride real estate market, but many of these sales have been distressed sales through the short sale process or bank owned properties.

As I reported in a previous blog the Capella/Inn at Lost Creek is under foreclosure with hopes that an investor will appreciate the long-term value of owning a highly discounted asset in an excellent location and with an excellent property management company running the hotels.

Foreclosure: Capella/Inn at Lost Creek - Letter from the Developer

2010-10-26T11:10:00.002-06:00

An Open Letter to the Town of Mountain Village
Difficult Times, Difficult Actions….

For the past 18 years, RAL has been committed to actively participating in the development of the Mountain Village. Beginning with a vision that led to creation of Inn at Lost Creek to provide Mountain Village visitors with a premier lodging experience, and culminating with the completion and opening of Capella Telluride, its associated residences and public amenities, the experience has provided me with a rewarding journey.

We have experienced the true meaning of both adversarial and cooperative efforts in the Capella Telluride development process, but in the end, ultimately, mutual goals were achieved that provided for the first 5 star lodging property in the Mountain Village. Unfortunately, that vision is somewhat clouded now by the current economic environment. Starting with the demise and bankruptcy of our equity and lending partner, Lehman Brothers, and ending with the impacts of the current weakness in tourism and leisure travel, depressed occupancy, lower room rates and high fixed operating expenses of a luxury resort hotel, we unfortunately find ourselves, not unlike other similar properties, burdened with debt which is not supported by the current financial performance of the property. Furthermore, the lack of residential condominium sales in this market to repay the construction debt, and the recognition of the reduced value of the hotel property in this economy, has caused our lender to take logical action to secure the property as their collateral asset. While we continue to maintain a positive relationship with the lender, at this time a receiver has been put in control of the property to protect the interests of all parties concerned.

As one can imagine, this situation is quite difficult for us. It is inconsistent with our prior dedication and commitment to this property throughout the development process, and the initial 20 months of operation. We do, however, recognize the reality of the decline in value of the capital invested, and we understand the actions of the lender.

RAL would like to thank all of those who worked tirelessly throughout the development process in past years in order to realize this vision of a partnership between RAL and the Town of Mountain Village. Special thanks goes to those municipal officials, especially Mayor Bob Delves, Phil Evans, Kathy Mahoney, and Molly Wolahan in their former positions, Telski and Dave Riley, Telluride Properties and Brian O'Neill and of course Ron Allred and Jim Wells who so skillfully enticed me to participate in the growth and success of the Mountain Village. Last, but not least, I would like to thank all of our employees at both the Inn at Lost Creek and Capella Telluride to whom I wish success in fulfilling our goal of being the very best lodging properties in Mountain Village.

I look forward to my continued involvement to assist our lender in the restructuring process, and ultimately recognizing our mutual vision in better times under different circumstances.

Robert Levine, RAL Mountain Village Lodging LLC

Aldasoro Ranch Update

2010-08-24T09:31:00.002-06:00

Currently there are 19 vacant parcels for sale at Aldasoro. The average days on market is 465 days.

Since January 1st, just one lot closed in Aldasoro for $575,000 back in March. No lots currently under contract.

In the Telluride region, only eight lots are under contract including three on the mesas (Wilson, Hastings and Horsefly), four in Mountain Village and one in town. Two of the four in Mountain Village are bank-owned, the third is a novelty lot (no vehicular access…just access via gondola or golf cart) and the fourth is a sub-par ski lot priced cheap.

Please call me for additional details.

Telluride Market Update - July 2010

2010-08-03T10:22:00.001-06:00

Telluride Watch - sharing a grand vision of the San Juans

2010-07-29T15:06:00.003-06:00

http://telluridewatch.com/view/full_story/8920479/article--GUEST-COMMENTARY-The-San-Juan-Range-Interconnect?instance=opinion

Read more for a vision of the San Juans....

Least expensive 2-bedroom condo in the heart of Mountain Village!

2010-06-15T11:25:00.002-06:00

Recently remodeled with beautiful wide-plank hardwood floors and stainless steel appliances, Blue Mesa Unit 22-ABC is the least expensive condominium residence available in the Mountain Village, Colorado. Walk to local restaurants, grocery store, ski shops and the gondola. Easy ski-in/ski-out access to beginner and intermediate terrain on four different lifts (lifts 1, 4, 10 and the gondola). Each bedroom and living area has its own private deck. Hand-picked, luxurious furnishings. Rents well. Includes deeded parking space. For more information visit www.bluemesa22abc.com

SPECTACULAR AMES RESIDENCE OFFERS EXCEPTIONAL PRICE REDUCTION!

2010-06-10T15:23:00.003-06:00

Straddling Howards Fork and Lake Fork of San Miguel River with apx 100 feet water frontage and bordering BLM stands an artisan’s timber-frame home. Bold, elegant interiors combine with exciting use of traditional barn design, connecting pods and environmentally conscious construction. Main home connected to covered wood walkway to a garage with studio. A small, organic guest cabin can easily become an office. Lots of personal touches top off thoughtful design including vintage recycled doors, recycled barnwood accent walls, recycled Douglas fir ceilings and floors, and wire brushed oak casing on doors, windows and baseboards. Can expand to over 6,000 livable SF. A jewel hidden in a National Park like setting. NOW ONLY $1,298,000! For more information visit www.108LakeForkTelluride.com

EXCITING NEW LISTING - Prime Lot, Excellent Family Neighborhood!!

2010-06-01T14:02:00.005-06:00

Newly built single family home in the Boulders at the Meadows in Mountain Village, Colorado. Sitting on a prime lot along the perimeter, this is an excellent family neighborhood. Located on shuttle route. Short walk to skiing and trails. Short Sale situation. Contact Mike today to set up a tour or to learn more about this exciting opportunity!

910 East Columbia Residence, Telluride

2010-05-27T16:15:00.004-06:00

Located in Telluride's East End neighborhood, close to Town Park, San Miguel River and hiking/biking trails. The home has a practical floorplan and is filled with excellent natural light. Oak floors upstairs, nice deck with Bear Creek views. Mature landscaping. Master bedroom/bath and loft upstairs. Kitchen, Living and Dining rooms on main level. Two bedrooms with shared bath downstairs. Separate entrance if needed from one lower bedroom. Price recently reduced!! For more information visit www.910ecolumbiatelluride.com

Peaks Stargazer Penthouse - the Ultimate Luxury

2010-05-25T13:19:00.003-06:00

Stargazer is a spectacular corner penthouse residence steps to skiing, Mountain Village and the Gondola. Large private terrace, exquisite furnishings and magnificent mountain views. Hotel amenities include the Golden Door Spa with heated pool, water slide and several treatment and workout rooms. Fully prepped for families to enjoy and rent. For more information visit www.stargazerpenthousetelluride.com

Excellent location, solid rental income, great price!

2010-05-19T14:35:00.002-06:00

Terraces 601 the most upgraded, back row, two bedroom ski-in/ski-out Terraces condo. Fantastic upgrades include cedar-lined closets/storage, granite slab counters, top-of-the-line blinds, custom shower doors and garage partition for 1-car garage. Condo is positioned to capture the best views of the ski runs. Mostly furnished. Excellent location, solid rental income, great price! For more information visit www.terraces601telluride.com

Beautiful Mountain Village Lot Available - 118 Adams Way

2010-05-12T09:06:00.003-06:00

Northwest facing, elevated parcel in Village at Adams Ranch. Tap fee of $10,000 already paid. Seller will consider an owner carry on 80% of the purchase price.
For more information visit www.tellurideareahomes.com or call Mike Shimkonis 970-708-2157.

Easily the best big view condo for the price in Mountain Lodge!

2010-05-10T10:28:00.003-06:00

Mountain Lodge 3010 is an income producing ski chalet at Telluride Mountain Lodge. Turn-key. 50 yards to skiing. Walk to gondola and Mountain Village Market. Deluxe services include concierge, ski valet, spa/pool, restaurant. Single-level. Xtra large bath. Handicap equipped unit. Easily the best big view condo for the price in Mountain Lodge. For more information visit www.tellurideareahomes.com or www.mountainlodge3010.com

Multi-million dollar living for a 10th of the price!

2010-05-07T14:33:00.009-06:00

Warm, Classic, Colorado log cabin 75 yards to skiing. Top-notch finishes in a nice, fully furnished, Telluride ski cabin perched on top of a hillside overlooking the mountains. Prime Weeks (#6 - early February near Prez Week; #35 - Labor Day Week), Plus 3 space-available weeks. Multi-million dollar living for a tenth of the price. Owners have unlimited access on a space available basis. For more information visit www.sunshinelodgetelluride.com

What Percent Off Ask Are Properties In Mountain Village Selling For

2010-03-03T23:41:00.002-07:00

The average discount from current list price to sold price for condos sold in Mountain Village since September 1st is 15%. The average discount from current list price to sold price for all homes sold in Mountain Village since September 1st is 15%.

Telluride Short Sale Update

2010-02-23T22:42:00.002-07:00

Since November, there have been at least 3 short sales in Mountain Village and one in town. There have been 7 bank sales (REO) to end users (6 of those were at Courcheval next to the Peaks and one buyer bought a 3-unit block); a few desperate sellers that sold before the property went short; some developer sales dumping inventory; and at least 4 REO sales in town.

Home and Condo Stats For Town and Mtn Village

2010-02-22T10:54:00.003-07:00

1. Four homes sold since November 1, 2009 in Telluride with an average sold price per foot of $611.87

2. Six homes sold since November 1, 2009 in Mountain Village with an average sold price per foot of $587.86

3. Thirteen condos sold since November 1, 2009 in Telluride with an average sold price per foot of $600.41

4. Thirteen condos sold since November 1, 2009 in Mountain Village with an average sold price per foot of $496.69

The Most Thorough Abstract of Title

2009-09-28T13:53:00.001-06:00

You've gotta love this lawyer...

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply.

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."

Annoyed, the lawyer responded as follows:

Your letter regarding title in Case No. 189156 has been received. I note that you wish to have title extended further than the 194 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased, by the U.S., from France in 1803, the year of origin identified in our application.

For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Isabella. The good queen, Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus' expedition.

Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana... God, therefore, would be the owner of origin and His origins date back, to before the beginning of time, the world as we know it AND the FHA. I hope you find God's original claim to be satisfactory".

Now, may we have our damn loan?"

The loan was approved.

Telluride Airport Runway Project Ends November 4, 2009

2009-09-28T13:37:00.006-06:00

The Telluride Airport runway reconstruction project started on April 7 and is scheduled to be completed on time: November 4th, 2009.

This phase of the runway project included the removal of the existing runway and a great reduction in grades to increase safety and meet FAA standards. The construction results in the west end of the runway being lowered 30 feet, the center of the runway (dip) being raised 16 feet, and the east end of the runway being lowered 14 feet. In addition, the safety areas have been widened by 100 feet on half the runway and all new runway lighting will be installed. This new runway will put Telluride in a new light for private jet owners as well as commercial flight operations. It will provide a much safer take-off and landing environment!

The final phase of this project will include widening the remaining runway safety areas and installing the Engineered Material Arresting System (EMAS) at the end of each runway. We are anticipating that this last phase can be completed in 2011 if funding becomes available. We are not anticipating an airport closure for the final construction phase.

Mountain Village Considers Increasing Annual Assessment

2009-09-24T22:38:00.005-06:00

Following is an important article about Mountain Village from the publisher of the Telluride Watch.

TMVOA Worries That Budget Cuts Could Hurt the Economy
by Seth Cagin
Sep 24, 2009
To Avoid a ‘Scorched Earth’ Budget, a Special HOA Assessment May Be Considered....click here for the rest of the article:

http://telluridewatch.com/pages/full_story/push?article-TMVOA+Worries+That+Budget+Cuts+Will+Only+Hurt+the+Economy%20&id=3702927-TMVOA+Worries+That+Budget+Cuts+Will+Only+Hurt+the+Economy&instance=2nd_top_story

So You Think It's Tough To Sell Your Property?!...

2009-09-01T23:55:00.003-06:00

A hilarious look at one seller's dilemma....we are in good hands aren't we?

The Daily Show With Jon Stewart

Mon - Thurs 11p / 10c

Home Crisis Investigation

www.thedailyshow.com

Daily Show
Full Episodes

Political Humor

Healthcare Protests

Have We Reached The Marianna Trench Yet?

2009-08-27T21:25:00.012-06:00

A quick glance at the picture...and we're off....Real estate buyers are beginning to sense we've reached some sort of bottom and they're starting to come back into the Telluride market and buying. There are more multiple offer situations and properties contracting, including three homes in Mountain Village in the past ten days.

Three of the seven offers I've been involved with in the past couple weeks never reached consensus on price. Two others did and are under contract. Two more are still in negotiations.

As far as which areas of the real estate market are improving and which aren't, the market is the most active in the $800,000 - $1.8 million range. 28 properties have contracted in the past six weeks in the Telluride region with the vast majority of them contracting in the past three weeks. The other sweet spot that's contracting are properties in the $200,000 - $500,000 price range (land, condos and a home or three) and fractionals, which remained strong throughout this downturn.

Across the board, the 28 sellers had to come off their original asking price an average of 21.35% to their current asking prices. Then negotiations with buyers occurred and I anticipate the sold prices of these properties will be another 12% - 18% average off the asking price.

The majority of the activity is occurring in Mountain Village and there are a few sales Down Valley, on the mesas (mostly land in the $400s) and some homes in Ophir. A few condos and a home in town (asking $865,000) are also recently under contract.

All of these contracted properties have seen alot of interest, some with multiple offers. A few are short sales. The reason I think the Telluride real estate market is experiencing new-found sales activity is because buyers perceptions have changed with the media reporting less damaging economic news and more silver linings. Interest rates are still low. These buyers are scooping up bargains yet most of the purchases are for people looking to own real estate to live in, play in etc., and not for the speculator.

I expect more buyers to slowly come out of the woodwork to analyze which type of property works best for their family; which location makes the most sense. A few buyers I am working with now are deliberating about where they want to be...condo versus home, ranch property versus ski property, town versus Mountain Village and so forth.

Real sellers who are actually selling their properties have made notable price concessions. Even in the luxury condo sector, as a three bedroom condo in See Forever Village closed today for 25% off of ask (selling for $3 million). It's certainly not a free for all with buyers but those who are seriously looking and have pre-qualified themselves with lending or cash are locking into value-priced, mid- and long-term family assets.

Signs of Life

2009-08-15T00:18:00.005-06:00

It's been an amazing 72 hours for me with an incredible amount of activity. Currently I am negotiating on six different offers ranging from a 1/10 fractional interest to a $4+ million vacant parcel with other buyers seriously contemplating making offers on three more properties. Offers are ranging from 10% to 54% off asking prices with most in the range of 20% - 25% off ask.

Also occurring in the same timeframe are three families signing leases and making deposits with clients to rent their properties, two listing inquiries and a few showings on select listings.

Here's an article in yesterday's Telluride Daily Planet entitled "Have real estate sale prices dropped to 2005 levels?"

http://telluridenews.com/articles/2009/08/13/news/doc4a83749fb3aad025743596.txt

Back to work...

Smithsonian Magazine - Telluride, My Kind of Town

2009-07-27T22:24:00.003-06:00

Just stumbled across this interesting article in the July issue of Smithsonian Magazine about Telluride as seen through the eyes of someone who has spent the last 48 summers here. Enjoy.

http://www.smithsonianmag.com/travel/My-Kind-of-Town-Telluride-Colorado.html

Captain Jack Carey - 1944 - 2009

2009-07-19T22:33:00.010-06:00

For those who knew Captain Jack Carey or the curious who may overhear locals talking about an incredible character killed in a tragic accident last Friday, check out this touching video about Jack's life. He was a world-class, die hard skier, a quintessential lumberjack with a thick N'Hampsha' accent and an old-time hang glider setting the altitude record for highest flight for a hang glider, 21,500 feet. Jack truly is a Telluride institution. He's skied the Andes, Alaska, Canada, Chamonix, Verbier and all over the United States. No matter what vehicle he was in, he had the petal to the metal. Jack always tried hard and jammed life into every moment of his life.

Telluride Mountain Man - Jack Carey

Besides giving me incredible advice as a ski tester about what the best skis would be for me or cutting the hazard trees on my property as a lumberjack, I had the blessed fortunue to play poker with him every Tuesday night for nearly the past ten years. A master poker player with a keen sense of knowing when to bluff and go big and knowing when to sucker us all in when he had the "nuts", the winning hand. One of the first "modern" residents of Ophir. He is a consummate professional and a true gentleman. He will always be in the hearts of all he knew.

....He was also the only person who could yell at me even though I hired him to cut trees (classic Jack!).

What a tragedy all the way around...for Monica, for Jill and family, for the young man driving the truck, for the community and all of us who knew him..... :-(

http://www.telluridewatch.com/pages/full_story/push?article--UPDATED+7-19-+Services+Set+for+-Captain+Jack-+Carey-+Killed+Friday+on+Lizard+Head+Pass%20&id=2982127--UPDATED+7-19-+Services+Set+for+-Captain+Jack-+Carey-+Killed+Friday+on+Lizard+Head+Pass&instance=TW_top_story

Long live the Captain! ......DAMN IT!

Gangster Economics Makes Global Warming The Next Bubble To Burst

2009-07-16T22:37:00.011-06:00

Take the time to read these links if you want to understand how the nation got into this financial crisis. If this doesn't create "pitch fork outrage" against some corporations, Wall Street firms and Government, then America needs a few swift kicks in the pants.

www.nytimes.com/2009/07/15/business/15goldman.html

www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine

Illusions Die Hard

2009-06-28T21:49:00.007-06:00

Summer 2009 Market Update: First, a quick national snapshot. The latest national existing home sales and new home sales numbers last week failed to meet forecasts. The National Association of Realtors reported 2.4% growth in existing homes sales last week, to an annual rate of 4.7 million. The stock market – no longer satisfied with meager housing growth – wanted a rate of 4.9 million and suffered a small sell-off. Even though sales nationally managed to increase in back-to-back months for the first time since 2005, existing home prices are still falling, distressed sales are more the norm and the national market remains saturated with a 10-month supply of homes.

In the Telluride region, sales volume and number of transactions are at their lowest point in many years. Dollar volume in May 2009 is off 79% compared to May 2007, the last May timeframe of normal historical numbers (May 2008 was nearly as dismal as this past month). Number of transactions is no different with May 2009 numbers down 75% from May 2007. To further illustrate the state of Telluride’s real estate market, just 10 transactions (excluding in-family transactions) occurred in May including:

· the sale of a $1.6 million home at Little Cone Ranch;
· three fractional sales totaling $145,000;
· two homes in Mountain Village – one of which was a short sale of a brand new ski-in/ski-out spec home selling for $783/foot and the other a brand new trailside home selling for $788/foot;
· a small, older single-family home near the high school in town for $800,000;
· two sets of mining claims totaling nearly $1 million that sold to a national land trust for open space preservation;
· and a 0.75 acre parcel Down Valley purchased for $235,000 by a local family.

The Telluride real estate market is nearly at a standstill. Since the start of the year, the ratio of how much properties are asking versus what they are selling for in San Miguel County averaged 83.9%. In years past, that ratio hovered in the mid 90%range. The number of listings in San Miguel County for sale in the Telluride Multiple Listing Service is 1,053. June is about to finish with at least seven sales and, most importantly, there are 38 properties under contract in the region including five condos and two single family homes in Mountain Village; 22 condos and four single family homes in town (17 condos at Element 52) and a couple properties Down Valley.

The average number of sales per month since January is 14, equating to 75 months of inventory to sell. Clearly something has to give and I expect it to be additional price reductions of existing inventory along with carefully considered asking prices of new properties coming to market. Anomalies exist and masterpiece properties with all the right criteria continue to command above market prices. Buyers with specific sets of criteria aren’t usually chasing the foreclosure/short sale/best deal properties. The sale of the home at 304 Benchmark in Mountain Village is a great example of that; it was a non-distress purchase selling for current market ($788/ft). A couple years ago it would have sold for close to $1,000/ft.

For some sellers though, the reality of Telluride’s market is seemingly unimportant or of limited interest. For others, they are stuck in a sea of similar properties competing to garner offers from a thin universe of buyers while trying to hold out from reducing asking prices in order to be the first to sell. However, even price reductions don’t always result in offers these days. Throw in a relatively small but significant list of foreclosure and short sale properties in the marketplace (43 of them) and it becomes clear that Telluride is in the midst of a correction too, like much of the country.

The difference, though, is Telluride’s income and property values are much higher than almost the rest of the country while significantly fewer residents are below the poverty line and lower income strata. We’re not going to have the Phoenix, Miami or Las Vegas experience where upwards of 75% of recent monthly sales are foreclosure and short sale properties. We're a "want" based real estate market versus a "need" based market.

What’s selling in Telluride since the start of the year? Condos in Mountain Village closing between $350,000 - $500,000; 2- and 3-bedroom fractionals with an average sales price of $96,000; homes in Mountain Village either in the $2.4 - $2.8 million range or in the $4 - $5 million range; and homes in town below $1.4 million.

Which sellers are reducing their prices?

While this current correction seems to be destroying the illusions of the previous bubble period, it’s still a mixed bag. Americans seem to have straightened up pretty fast. After the crash, we saved all the cash we can, at least according to news and anecdotal reports. Savings rates, which had been near zero, are now bouncing up towards 5%. Americans are supposedly planting backyard gardens, cutting our own grass, driving less, cooking meals at home, and so forth. Yet the feds are waving the bottle under our noses encouraging us to spend. But on the whole, consumers seem to be breaking free of a few investing illusions including that ‘houses always go up in price’. People know it doesn’t work like that. Many speculators and homeowners alike have lost big. They’ll remember it.

In Telluride we will see continued and noticeable growth with families relocating to the area. Buyers will continue to make smart lifestyle purchases of real estate here along with realistic long-term land investing. With rare and risky exception, gone are the days of flipping properties. It now is much more about having a home in the mountains for the extended family to enjoy while usually renting it out to cover some expenses, or relocating for a few years or longer because of the excellent quality of life (community, schools, nature, history, skiing etc).

Yes, the Telluride housing market is slow. But it works like other markets. It reacts, then it over-reacts. It shoots, then it over-shoots. For the past 6-12 months it has been a rough ride for many sellers and brokers here but there is a silver lining for both Telluride and my business. Fortunately my business continues to pace along with a recent closing a couple weeks ago, another one about to close and a third under contract in addition to receiving two offers in the past week for seller clients.

Telluride has a few silver linings too. The ski company just announced a major snowboard World Cup event (boarder-cross and dual giant slalom) December 17-20, which is the only Olympic qualifier competition in North America. Mountain Village’s newest hotel, Capella, opened four months ago and is garnering lots of international attention and strong praise from guests. If you want to try out Capella contact me directly for an outstanding “Discovery Package” involving 3 nights lodging, dinner, activities and spa session for as low as $995. The Peaks Hotel finally is getting its bearings with an impressive remodel and the hiring of a highly experienced sales and marketing director. Other good news is that there were no foreclosures for the month of May.

Barring any extreme situations, I believe Telluride has touched bottom in terms of sales. We may bounce around down there for the rest of the summer through fall and into winter, but as sellers continue to relent and others acquiesce to a new market reality, transactions will continue. Offers are definitely being made and properties are contracting yet buyers for now have the benefit of choice and price on their side.

Downturn Slams Mountain Village Owners Association, Forcing Board to Eye Cuts and New Assessments

2009-06-26T16:20:00.003-06:00

by Seth Cagin
06.26.09 - 12:41 pm
Board Discusses ‘Prioritization’ of Resources

The tough economy is not sparing the Telluride Mountain Village Owners Association, which is absorbing a sharp drop in revenues, particularly from real estate transfer assessments. There was ample evidence to be drawn not just from the content but also from the sober tone of a board discussion on Thursday that the crisis is, if not imminent, clearly in sight.

“The purpose of this discussion is that we want to make sure everyone is aware of where we are,” said TMVOA President Nelson Sharp. “I’d like to get a lot of membership input on this. We are going to be forced to prioritize, even if things partially come back.”

As of May 31, TMVOA, which is the master owners association in Mountain Village, saw revenues $952,000 behind budget. RETA, which has been the association’s largest revenue stream, is 66 percent below 2008 to date and 69 percent below the average of the previous nine years.

After accounting for expenses, TMVOA has lost $853,500 through May 31, compared to a budget that foresaw earnings of close to $100,000, for a net variance of $953,500. As a result, TMVOA reduced its reserves from $13.32 million to $12.47 million, versus a budgetary expectation that reserves would grow slightly.

The risk of foreclosures poses yet another threat to the TMVOA budget, if membership dues are affected, although that specter has not yet manifested and owner assessments through May 31 are actually slightly ahead of budget. Owner assessments, budgeted at just over $1 million this year, represent the second largest revenue stream to TMVOA, after RETA, which was budgeted to generate $4 million this year, but will likely fall far short of that.

Looking ahead, according to a memo prepared by TMVOA CEO Erin Neer, if nothing changes through the end of 2010, “the organization will be drawing down reserves significantly, leaving very little excess reserves to cushion further detrimental performance or significant outlays that are currently not planned.”

As one way to avoid that outcome, Neer identified several potential new revenue sources for TMVOA, notably a civic assessment, which is tantamount to a municipal sales tax and which could generate $1.5 million a year, and a resort fee assessed on lift tickets, which could generate $700,000. Finally, if existing revenue continues to flow below expectations and no new revenues are found, debt obligations and TMVOA’s legal obligation to fund gondola operations could require TMVOA to impose a special assessment on all the members, which consists of all property owners in Mountain Village.

In light of the daunting series of budgetary challenges, one Mountain Village resident, Don Orr, challenged the board by asking whether there is any firm evidence that money spent for event sponsorship, at just over $845,000 this year, and which includes the summer sunset concert series, is economically beneficial.

TMVOA president Nelson Sharp agreed that measuring an economic return on that investment is high on his agenda.

Several board members responded that events produce clear benefits, including a higher quality of life for residents and visitors alike, the creation of “vitality,” and making Mountain Village a desirable place for new buyers of real estate, which in turn generates real estate transfer assessments.

Penelope Gleason of Bootdoctors argued that while the sunset concerts, for example, don’t directly benefit her business because her store is closed when they take place, she absolutely supports them because they benefit the economy as a whole, and the success of restaurants and bars, who do benefit directly from the concerts, is essential to her own economic success.

As has often been the case in the Telluride region, some fundamental questions were posed in the course of Thursday’s discussion, namely, “what are we?” and “where are we going?”

“Are we the economic development arm of Mountain Village?” Sharp asked. “Are we the entertainment arm?”

In funding worthy causes, referring as an example to support for the Telluride Montrose Regional Air Organization, board member Jonathan Sweet said, “we should do our share, but not more than our share.”

Telluride Ski and Golf Co. CEO Dave Riley, who sits on the TMVOA board, said that it is necessary to put discretionary spending in one bucket and essential spending in another, “and see what that looks like.”

“I think we’ve gotten ourselves in this pickle here because for twenty years we’ve been riding a real estate development boom” and there’s a need to ask “what is our economic model for the long run here … that is not dependent on real estate development.”

“We can’t event ourselves out of this problem,” he concluded.

This story will be published in the July 2, 2009, print edition of The Telluride Watch.
© watchnewspapers.com 2009

A Plug For An Outstanding Illustrator & Photographer

2009-04-30T20:32:00.004-06:00

I had the fortune to stumble upon Joanie Schwarz's outstanding works when she was on a working ski vacation to Telluride a couple years ago. Since then, Joanie has photographed and illustrated two portraits of our family -- one of our daughter Ava and the other of our border collie, Mesa. Joanie has been recognized in the publishing world for over 25 years for the dreamlike quality in her painted and photographic imagery including works in Time Magazine, US News and World Report, Playboy Magazine, and hundreds of book covers for Simon and Schuster and Scholastic books. She shoots newborns, bellies, family and kids, dogs, painted works and nudes. Joanie is frequently in Telluride and lives in New Jersey.

You can see her work at www.joanieschwarzphotography.com. Her illustrations were perfect surprise gifts for my wife as well as our relatives.

Vacation Homes Still Work For Some

2009-03-25T10:58:00.002-06:00

An interesting article from CNBC

Vacation Home Still Works For Some
By: Shelley K. Schwartz, Special to CNBC.com | 23 Mar 2009 | 01:15 PM ET

Interest rates are at rock bottom. Housing affordability is at a record high and the glut of available properties on the market has left buyers holding all the cards.

If your long-term financial plan includes the purchase of a second home, or vacation property, now may be the time to make your move.

“There are an abundance of properties available right now with sellers making concessions that they generally aren’t going to make in a rising market,” says James Boykin, author of “Investing in a Vacation Home for Pleasure and Profit” and a retired professor of real estate analysis at Virginia Commonwealth University.

Despite the incentives to buy, however, the mortgage crisis that crippled the market over the last three years has made it harder to qualify for loans—particularly true if you’re purchasing a second home.

And with property values continuing to fall, homeowners who once relied on the equity in their primary residence to finance the purchase of a cabin or beachfront retreat are no longer able to tap those funds.

As such, if you’re looking to expand your real estate portfolio in today’s market, be prepared to bring more cash to the closing table and perform greater due diligence to ensure the property you do select meets your personal and long-term investment needs.

“Real estate is a very good alternative to stocks and perhaps other investments at this time, but it needs to be right for you personally as well as right for your portfolio,” says Boykin.

Here’s a look at how the second home market stacks up, what to look for when selecting a property and what it takes to land a loan.

Future Demand

According to Walter Molony, spokesman for the National Association of Realtors, the second home market is “fundamentally healthy,” despite short-term ups and downs.

Indeed, the number of vacation homes sold fell 30 percent to 740,000 in 2007, from a record 1.07 million in 2006, according to NAR. The median price was $195,000 in 2007, down 2.5 percent over the prior year.

While the results have yet to be tallied for 2008, Molony notes demographics bode well for that segment over the next decade.

“The long-term underlying demand is favorable for vacation homes because of the large number of middle-age, middle income Americans [who are the primary buyers of such properties],” says Molony. “In recent years, this market has been driven by the baby boomers, but there are two even larger population groups coming up right behind them. Those younger segments will continue to fuel this market for the next 10 years.”

At the same time, NAR reports the housing affordability index rose 13.6 percent in January to 166.8, the highest since tracking began in 1970.

The January index, the most recent month for which data are available, indicates a median-income family, earning $59,800 could afford a home costing $283,400 in January with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. A year ago, the same family could afford a home costing $263,300.

“If you have the resources and are confident about your economic future, you’re not going to find a better market than we’ve got today in terms of affordability and raw buying power,” says Molony. “It doesn’t get much better than this.”

Who’s Buying?
Those who buy vacation homes overwhelmingly do so for personal enjoyment, rather than investment potential.

A 2009 NAR study finds 84 percent of vacation homebuyers were most interested in owning a family retreat, while 25 percent bought with the intent to rent to others and 26 percent are looking to help diversify their investment portfolio.

A smaller percentage – 30 percent – expect to use their vacation home as their principal residence in the future.

Regardless of your intent for a vacation property, however, Boykin notes it’s important to buy with resale value in mind.

Look for views, proximity to amenities and established resort communities, he says, especially if you hope to rent it out part-time.

It’s also best to stay within driving distance of your primary home, enabling you to enjoy your vacation retreat more often and pop in to address problems as they arise.

First-hand knowledge of the market will also help you avoid buying into a community that’s on the outs.

My Top Clients' Perspective On the National Economy

2009-03-24T21:44:00.004-06:00

In the past week I spoke with my top clients about their intimate and very knowledgable perspectives of the national economy. These are people who are titans in business and politics and have some very informative opinions.

1. Extended period of massive deleveraging by financial institutions (4-5 years).

2. Further GDP contraction

3. Reduced consumer spending

4. Higher (10%+) unemployment through 2010

5. Periodic bear market rallies rolling over to new lows

6. National property market looks ugly. Only really motivated sellers will transact unless place is unique (beauty is in the eye of the beholder/buyer).

7. Every market is different but real estate market will hit bottom in late 2009 (the most optimistic assessment of the people I spoke with)

8. 16 million homes upside down in America. Government stimulus should help 4 million of them.

9. One client just lectured students at MIT and told them that of the various real estate markets he analyzed around the country, the median sales price declined 42% to get the markets going again.

10. The velocity of money, income and spending must increase before the markets hit bottom. All three are still decreasing.

11. Another $1 - $2 trillion in government stimulus needs to be injected then ultimately drained out of the markets.

12. There will be no bounce of a recovery. Instead of a "V" shaped recovery it will be a "U shaped recovery.

13. The stock market is going nowhere for a while. Earnings will be trashed for a year+.

14. Hard assets will not generate a high rate of return. Risk capital will demand very high rates of return. The Obama administration is going to have to deal with risk capital...it is on the sidelines and will eventually have to be dealt with.

15. Smart money is paying down debt and hording cash. There will be an enormous number of buying opportunities for investors, especially in securities and real estate, not equities. Non-performing loans will be bought for 20 cents on the dollar and resold for 60 cents on the dollar.

16. Household income will be flat for the foreseeable future and therefore inflation will not be a problem.

17. Prime will remain at current level into mid/late 2009.

18. US Dollar should show strength based on global problem with money flowing to US Treasury for protection. 5yr curve remains stable and the 30yr may show some increase, but small.

19. Energy is a wild card but since the US has seen $3+ pump prices it won’t shell shock consumers.

20. Current housing inventory is on a rapid decline due to builders not over starting new homes. Fed has jumped in to mortgage back securities and the $8,000 direct tax deduction on 1st time home buyer will give birth to entry level home sales trickling up into the more expensive home priced market.

21. All in all consumers are beginning to realize the sky IS NOT falling in and beginning to take advantage of the purchase opportunities.

22. $1.75 trillion debt for 2008 is a low estimate and it’s sad to see these mammoth corporations continue financial bailout and abuse. The Fed needs to take a hard stance and stop the bailouts.

Anyone readers care to share your opinion?

If You Own Property In Mountain Village, This Affects You

2009-03-02T12:39:00.001-07:00

TMVOA Members Circulate Petition to Force Special Election
by Seth Cagin, The Telluride Watch, Mar 02, 2009

A petition is being circulated among members of the Telluride Mountain Village Owners Association to force an election before the end of the ski season to amend the organization’s articles of incorporation.

If successful, an election very similar to what was scheduled by the TMVOA board on Feb. 16 by a vote of 4-3, with only the three Telski members of the board in the minority, and then rescinded on Feb. 25 by a vote of 3-4, after the lodging member of the board, John Volponi, changed his position, will take place.

The ballot questions will ask the TMVOA membership to add residential representation on the board and thereby reduce the influence exercised by the Telluride Ski and Golf Co., and also to remove the provision in the articles of incorporation that allow Telski to veto any such changes to the articles of incorporation or to specified bylaws.

Since Telski does have that veto provision, the company, which enjoys its influence as the original developer of Mountain Village, could veto both ballot measures. Telski CEO Dave Riley stated unequivocally that Telski will do just that when it was a majority of the board, albeit at the request of residents, that was working to call the special election.

The question that will be considered by members if the special election is held is slightly different from what was previously discussed. Last month, the proposal was to add two members to the board to represent the residential class of members. That would have given the residential class four of nine members, and by leaving Telski’s representation at three members would have reduced the ski company’s leverage. The current proposal is to give the residential class one additional member, and add an at-large member to be voted upon by the residential, lodging and commercial classes. In addition to the residential class, the other three classes are the lodging and commercial classes, which each elect one member to the board, and the special class, consisting of the ski company.

As of Monday morning, Mountain Village resident Richard Child, said he has received “many signed petitions” via fax, many of them from “people I don’t know.”

Consistent with what other Mountain Village residents have said, Child added that there is no leader or organized group working to change the way that TMVOA is governed, although he has been a point person in circulating and collecting petitions.

“There are a lot of people involved in this,” Child said on Monday morning. “That’s what makes this special, that it’s not just one set of people. It’s a true grassroots effort.”

Child also emphasized, as other Mountain Village residents involved in the effort have emphasized, that there is “no antagonism” toward Telski, but rather a simple desire to see equity on the TMVOA board.

In the email that accompanied the petition and was signed by Child, the effort is described as a bid to end “taxation without representation.” While residents have 58 percent of the votes and pay 79 percent of the assessments that help fund TMVOA, they have only 29 percent of the votes on the board, according to a chart in the email.

Telski, as the sole “Class D” member, casts no votes and pays no assessments, but controls 41 percent of the board seats – although it does cast votes and pay assessments by virtue of its ownership of residential and commercial property.

The issue of this disproportionate representation has come to a head, the email suggests, in part due to concern about a collapse in revenues to TMVOA from real estate transfer assessments. Were TMVOA, which is the master property owners association for Mountain Village, to run into budget shortfalls, a special assessment might be necessary to meet TMVOA’s legal obligation to fund gondola operations. The gondola costs around $3 million a year to operate and has also required expensive periodic maintenance. Last year, for example, TMVOA spend approximately $3 million in gondola upgrades.

If a special assessment were necessary, Child writes in his email, “Class D (Telski) would not bear any portion of the special assessment.”

Assessment rates for the various classes of TMVOA members are established in the TMVOA articles of incorporation, which is precisely the document that can be amended only with Telski’s assent.

Residents are becoming increasingly educated as to how TMVOA operates and is funded as this process moves along, said Davis Fansler, a former Mountain Village mayor.

The fact that Telski pays no assessment is clearly part of that education.

“If you assume that any future financial risk currently resides with the residents,” Fansler said on Monday, “it is fair to ask what the residents might do to redistribute that risk.”

Buyers Love Telluride, But At What Price?

2009-02-26T10:34:00.005-07:00

In past downturns, Telluride held fast to the ability to be among the last enclaves to be effected and one of the first ones out of the fracas. Seems like we are among the last to currently decline given the nearly 2-year housing ailments in various segments of major markets like Phoenix, Los Angeles and Miami. While Telluride's market strength is holding up better than most, the national consumer psychology is so damaged that my sense is a large percentage of prospective buyers are expecting Telluride to substantially fall off the numbers. Telluride is in a declining market, yet a large number of sellers are still living under the aura pervading this town since the 1970s -- that Telluride will continue to consistently go up in value. Owners use the fog of generalities in placing an unrealistic value on their properties. It’s tough to fault them too, given the last few years of heady returns.

In general, there are some positive elements that will keep Telluride from falling off a cliff including very limited supply; incredible beauty; unique recreation; a historically intact town; deep wealth; families providing struggling relatives (who own here) with private promissory notes and, thus, preventing foreclosures; and limited foreclosures in San Miguel County compared to the rest of the nation. The opportunities are beginning to surface here with the increase in the quantity and depth of price reductions and appropriately priced listings. Yet, with some exceptions, the nation is taking a breather with real estate.

Some of Telluride's top visitor markets are the markets with the largest number of foreclosure ratios. As long as foreclosures happen in any neighborhood, whether in Telluride or where you live, values remain in jeopardy. Amid this storm, anomaly sales will become more revealing. Families will be buying for more practical reasons like lifestyle changes, family gatherings or for relocation and less for speculative investment. Cash buyers will have a field day cherry picking some great value plays. I also think the new luxury development Capella in Mountain Village will be part of the anomaly amid this crisis. The truly rich are very glad that fewer households are in their echelon. Luxury is a word/concept/lifestyle that's been ridden hard and left wet by the masses over the past two decades. The cache of "luxury" will revert back to the domain of the truly rich in the next few years and parts of Telluride, like Capella or a special ranch or a well-located, positively unique home, will ultimately benefit.

Mountain Lodge Stats

2009-02-17T17:58:00.005-07:00

Just some quick stats on the Mountain Lodge, a 96-unit ski-in/ski-out hotel condo project in Mountain Village with pool, restaurant, hot tub and other ski amenities.

Currently there are ten two-bedroom condos for sale at Mountain Lodge with an average of $526,200 and an average asking price per foot of $618 and an average days on market of 264 days. Two two-bedrooms are currently under contract and scheduled to close in the coming 2-4 weeks.

Properties are contracting in the region but at a slower pace than normal. It seems like the entire mid-America market is dead with nearly non-existent retail expenditures and continued foreclosures and jobless claims. While that may be the pulse of the country in general it is not what is happening in Telluride's "island of wealth" as one client puts it.

More details on what's contracting when time permits.

San Miguel County Real Estate Update 10.18.08

2008-10-20T15:13:00.002-06:00

Single family home sales in the rest of the county have finally followed the trend in town and Mountain Village and have declined 48% from 60 transactions last YTD ($57 million total) to 31 this year ($32.5 million). Residential vacant land sales outside of town, Mountain Village, Ski Ranches and Aldasoro are down substantially from 70 purchases last YTD ($93.1 million) to only 32 this year ($21.7 million).

Besides locals' housing in the town of Telluride, the only areas of growth or flatness are: the sales of value-priced, big view vacant lots in Aldasoro (above the airport) with 6 sales this YTD and 7 sales in 2007 YTD; the sales of select lots in Telluride Ski Ranches (a huge value play in my opinion) and an increase in single-family home purchases in Ski Ranches from 3 in 2007 to 5 in 2008 YTD.

Besides town and Mountain Village and with the exception of the West End (Norwood, Naturita, Nucla etc), there are 9 other properties currently under contract around the county with a median asking price of $998,000 totalling $13.8 million including 1 home and 2 lots in Aldasoro, 1 home in Ski Ranches, 1 home Down Valley, 2 homes on Wilson and Last Dollar mesas, 1 condo outside of town and 1 deed-restricted home in Lawson Hill.

Since January 1, 2008, 246 properties of 1,046 properties (23.5%) currently for sale in the immediate Telluride area (town, MV, Ski Ranches, Ophir, the mesas, Ilium, San Bernardo, Down Valley etc. but excluding the West End and other counties) have reduced their asking price on average of 14.1% (-11.2% median). Of those 246 price reductions, 89 are in Mountain Village with an 11.3% average price reduction (-9.1% median) and 64 are in town with a 15.8% average price reduction (-11.2% median).

Smart, cash-enabled buyers continue to cherry pick their favorite homes and investments amid a vast array of properties. Please contact me via email or cell phone for a more detailed perspective on any part of the market or to get details on the best buys in the area.

Mountain Village Real Estate Update 10.17.08

2008-10-20T15:03:00.004-06:00

Telluride Properties has watched markets rise and fall for almost three decades and this year, because of our nimbleness and foresight, the company has garnered our biggest market share ever in an incredibly difficult market. Personally, I am having a better year in 2008 than in 2007 including a record-setting sale of a beautiful, historical home in Telluride as the highest price paid on a price per square foot basis ($1,411) in the history of the town. Certainly, opportunities exist.

Mountain Village Real Estate Update
It's a dramatic story in Mountain Village with 70 condos selling last YTD and 29 so far this year (a decline of 59%). Fractional purchases are relatively steady in Mountain Village with 53 sold last year YTD and 43 this YTD with only a $450,000 difference in volume ($6.5m last year, $6m this year). Single family home sales in Mountain Village have fallen precipitously by 71% from 28 sold last year to 8 this year. Vacant land sales in Mountain Village have dramatically declined too and are off 60% from 25 sales last year to 10 this year.

Gauging current activity in the Telluride MLS, there are 30 properties under contract in Mountain Village totaling $62.5 million. Of those, 8 are fractional interests at the Franz Klammer Lodge; 2 are condos at the Mountain Lodge; 1 vacant lot asking $499k; 2 single family homes; and the remaining 16 are pre-completion units at Tristant, Cortina and Capella (some which may not be arm's length, end-user transactions). The purchase of the Peaks Hotel remains to be an opportunity as the most recent buyer of the entire complex ended up having big federal legal troubles and the deal evaporated.

Since January 1, 2008, 246 properties of 1,046 properties (23.5%) currently for sale in the immediate Telluride area (town, MV, Ski Ranches, Ophir, the mesas, Ilium, San Bernardo, Down Valley etc. but excluding the West End and other counties) have reduced their asking price on average of 14.1% (-11.2% median). Of those 246 price reductions, 89 are in Mountain Village with an 11.3% average price reduction (-9.1% median) and 64 are in town with a 15.8% average price reduction (-11.2% median).

Backing out 30 contracts on pre-completion condo developments, there are 40 properties currently under contract in the immediate area. Of those 40, 19 made price reductions before going under contract with an average percent off ask of 12.2% (-9.6% median).

Of the 189 sold properties (listed in the MLS) in the immediate area since January 1, 2008, a whopping 163 (86.2%) of them made price reductions with a 13.6% average percent off ask (-11.6% median). Of those 163 sold properties, 75 were in Mountain Village with a 14.0% average percent off ask (-11.6% median).

Telluride Real Estate Update 10.16.08

2008-10-20T14:54:00.002-06:00

Greetings from Telluride. It's been a couple months since I posted any relevant information on my blog and now have some very revealing information to report regarding the Telluride real estate market.

TOWN OF TELLURIDE DETAILS
Through September 2008, the Telluride region continues to feel the effects of the dreadful and appalling national economic meltdown with the number of transactions down 47% year-to-date and dollar volume down 50% YTD in San Miguel County.

In town, the condo market declined from 57 transactions YTD last year to 28 so far this year (a decline of 51%). Single family home transactions in town declined from 22 last year to 14 this year YTD. Fractional purchases in town have started to slow down too with 23 made last year at this time and 16 this year. Even vacant land in town is down 70% (from 7 lots last year to only 2 this year).

Backing out 16 pre-completion contracts at the luxury condo development Element 52, there are 11 properties under contract with a total asking price of $12.3 million ranging from a $329,000 studio at the Hotel Telluride to a $3.995 million spec home.

Since January 1st, 246 properties of 1,046 properties (23.5%) currently for sale in the immediate Telluride area (Town, MV, Ski Ranches, Aldasoro, Mesas etc) have reduced their asking price on average of 14.1%. Of the 246 price reductions, 89 are in Mountain Village with an 11.3% average price reduction (-9.1% median) and 64 are in town with a 15.8% average price reduction (-11.2% median).

Of the 189 sold properties (listed in the MLS) in the immediate area since January 1, 2008, a whopping 163 (86.2%) of them made price reductions with a 13.6% average percent off ask (-11.6% median). Of those 163 sold properties, 47 of the 163 price-reduced properties were in the town of Telluride with a 13.2% average percent off ask (-11.6% median).

July Telluride Real Estate Update

2008-07-23T16:16:00.004-06:00

Telluride's market is off considerably...50% off in number of transactions YTD through June versus last year and about 40% off in dollar volume YTD. Historically, about 1,200 properties are in Telluride's Multiple Listing Service (MLS) at any given time with about 600-750 properties selling. Now there are about 1,650 properties for sale in the MLS and I am projecting about 400 properties will sell. In other words, only about 25% of the properties on the market will sell this year. Of course this means it is a buyer's market...however there is a huge disparity between realistic sellers, ignorant sellers and those stubborn and/or wealthy enough to ride out this stormy market.

Rosewood Hotels is dead in the water. Developer was foreclosed on by the lender for $50 million about a month ago. Developer has filed a lawsuit against the lender to stall off the foreclosure. There will not be any activity on the Rosewood property for at least a year or two in my opinion.

The buyer for the Peaks Hotel continues to keep the property under contract but the closing date keeps getting pushed back. I have low expectations on this deal too.

Interesting Telluride News

2008-06-21T10:48:00.003-06:00

Having lived here intimately for over 15 years while now raising a family gives me an interesting perspective on where we are as a community and where we are heading. In essence, Telluride has fiercely held onto its small-town charm while embracing the values of small town living with a big-time appreciation for a strong community, a high level of educational excellence, the success of many long-standing summer festivals; and an incredible quality of life. This doesn’t come easily and there are serious challenges including replacing Main Street’s water line, paving the road into Telluride, bonding for a new medical center, funding for new affordable housing and dealing with an expanding school district. Approving and funding these issues will easily cost the community $60 million, a startling number considering that about 3,000 residents live here. Some additional highlights:

The Valley Floor - The Colorado Supreme Court recently upheld the district court ruling allowing the land known as the Valley Floor (the entrance to town) to remain as open space forever. The monumental decision guarantees that the land will never be developed.

Revelation Bowl – The ski mountain will have a new high-speed lift located on the backside of the top of Gold Hill accessing a wide and treeless, open bowl that spills down towards Bear Creek. The terrain dramatically sits in a hanging bowl with a northeastern aspect that naturally gathers huge amounts of snow from the area’s predominantly western storms. This terrain combined with the opening of Gold Hill Chutes and Palmyra Peak has totally changed the way Telluride’s mountain skis. The amount of additional terrain has created a ski mountain experience unlike no other in North America…and I don’t say that lightly. The mountain has opened up an additional 400 acres with 4,425 vertical feet of skiing.

Capella Hotel – This 150-room uber-luxury hotel located in Mountain Village is scheduled to open early 2009. Headed by former Ritz Carlton visionary Horst Schulze, the hotel promises to provide meticulous personal service, a private high-end spa, pool and lounge, gourmet cuisine, an ice rink and an intimate level of detail. Having met with Mr. Schulze a few times in the past couple years, my skepticism has turned to belief in his aim to deliver perfection with an uncompromising emphasis on personal service. Capella Telluride should become one of the world’s finest ski hotels in due time.

Telluride’s School District – At various points throughout 2007, the Telluride School District has received the state of Colorado’s most prestigious awards in education with the naming of Colorado’s Superintendent of the Year, Teacher of the Year, Athletic Director of the Year and the Librarian of the Year. The 4-award occurrence was so rare that Governor Bill Ritter gave his only commencement speech of his term to the students, faculty and families of the Telluride High School a couple weeks ago. Beyond the awards is proof in the pudding: the Telluride elementary, middle and high schools continue to outperform a great majority of school districts across the state in standardized tests, nearly 20% higher on the tests than the state average.

Telluride is entering its Golden Age. The Telluride community is determined to maintain peace, harmony, stability and prosperity for a long time to come!

Telluride Real Estate Market Update

2008-05-14T14:40:00.003-06:00

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.

Was this info helpful? Please let me know your thoughts.

Mountain Village Lot Sales Sluggish

2008-04-09T13:12:00.001-06:00

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

2008-04-09T13:11:00.001-06:00

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

2008-04-09T13:08:00.000-06:00

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

2008-03-06T09:37:00.002-07:00

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?

2008-02-24T15:23:00.002-07:00

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

2008-02-22T12:58:00.003-07:00

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.

Town of Telluride 2007 Year-End Quick Summary

2008-02-22T12:56:00.002-07:00

Town of Telluride 2007 Quick Summary

In 2007 the town of Telluride saw 50% more homes sell than in 2006 (33 as compared to 22). However, unlike the Mountain Village which enjoyed a substantial increase in the median selling price, Town of Telluride homes saw the median selling price drop by 7% as compared to 2006 (from $1.975 million to $1.83 million).

Telluride condos followed a more typical countywide trend; prices rose slightly, but fewer units sold. While 21% fewer condos sold in 2007 than in 2006 (62 as compared to 78), the median selling price rose by 11% ($717,500 to $795,000).

As for homes that did sell, those homes sat on the market for nearly three months longer than they did in 2006 (a trend similar to that seen in Mountain Village).

Mountain Village 2007 Real Estate Highlights

2008-02-22T10:35:00.005-07:00

Real estate sales in San Miguel County posted a record in dollar volume for 2007, exceeding the previous record in 2005 by 4% and, flying past 2006 by 11%. While the dollar volume was high, the number of sales in the county declined 11% as compared to 2006. Indeed, the number of sales in 2007 was the lowest for the county since
1998.

While the trend for 2007 in San Miguel County was high dollar volume and lower transaction volume as compared to 2006, Mountain Village homes broke with that trend. After several years of slower sales a record number of homes were sold in the Mountain Village – 40, in fact.

Record Number of Homes Sell In Mountain Village In 2007

And even better news came out of the Mountain Village: even as the number of homes sold rose, the median selling price for each home jumped up as well. The median selling price for a Mountain Village home increased by 18% as compared to 2006 (from $2,500,000 to $2,937,500).

The dollar amount for the highest price paid for a Mountain Village home soared from $8 million in 2006 to just over $13 million in 2007, a tremendous increase for one year.

Sales of condos in Mountain Village followed a more typical trend: the number of sales dropped by 13% as compared to 2006, while the median selling price increased significantly, by 71 % (from $810,000 to just over $1.3 million). That the number of condo sales dropped can also be seen in the fact that condos that sold sat on the market for three months longer than they did in 2006.

And again, the more typical trend of higher dollar volume and lower number of transactions volume was seen in Mountain Village vacant land sales. While the number of sales of Mountain Village vacant land declined by 54%, the median selling price increased by 21%.

National Slowdown Likely To Be Short-Lived In Telluride

2008-01-31T11:49:00.001-07:00

While recent headlines have been filled with news about a volatile stock market and economic experts’ fears of a national recession, Telluride’s real estate market will likely remain relatively insulated from the uncertainties of the wider national economy.

To illustrate, year-end numbers for the market are showing that while the number of sales declined for 2007, generally speaking median sold prices rose. On closer inspection that means that higher dollar properties are selling well and well-heeled buyers are able and willing to make a purchase.

The last time the national economy suffered a severe slow down (after 9-11 and the start of the Iraq War in March 2002), activity in the Telluride market also slowed; however, within six months transactions picked up again and showed a steady increase from that point forward. If Telluride's real estate market performs in this current cycle like it did six years ago, it is likely aging baby boomers and others desiring a higher quality of life (whether by purchasing a second home or relocating to the area) will continue to invigorate the market. The Wall Street Journal recently reported on this phenomenon:

http://www.realestatejournal.com/secondhomes/20080123-dougherty.html

Even so, in the current marketplace price reductions of listed property are occurring more frequently, albeit only in a limited segment of property categories. The typical seller in Telluride owns their property with little or no debt; loves their property; is sometimes upsizing/downsizing within the market; and has the patience to wait for an acceptable price. Still, some sellers, regardless of their net worth are beginning to tire of the length of time their property has been on the market (2+ years), and are becoming more realistic in their price expectations.

For sellers who decide they are ready to move their property, pricing a home at or below market value is critical. Time and time again in this market I have seen buyers act when they see value, no matter what the price band. And for buyers who have been waiting to see value in the market, value can be found in certain sectors of this market.

Knoll Estates Vacant Land Holding Value

2008-01-23T23:56:00.000-07:00

Knoll Estates is a hidden gem of smaller lots tucked onto a prominent ridge in the Mountain Village. From the top of the ridge homeowners have incredible views of the Sneffels Range to the north and the Wilson Range to the southwest – and for the convenience and proximity to the slopes, golf course, and Mountain Village shopping and restaurants, Knoll Estates lots are moderately priced.

Currently there are two lots for sale in Knoll Estates, and, as of the date of this post, a third is under contract.

Of the lots for sale, Lot 12, which is 0.07 acres, is listed for $469,000. It has been on the market for 235 days. Lot 7, which is 0.18 acres and twice the size, has an asking price of $675,000. That lot has been on the market for 230 days.

For comparison purposes, there are ten lots for sale in the Mountain Village which are similarly priced (between $450,000 and $569,000).

The lot in Knoll Estates which is under contract is larger than Lot 12 or 7 and sits on the perimeter of the subdivision. The asking price for that lot had been $624,000.
Knoll Estate lot prices are holding their own. In August, Lot 31, which is 0.11 acre, sold for $485,000, the asking price. In April two Knoll Estates lots sold. One, Lot 33 which is 0.10 acre, closed for $495,000 ($4,000 lower than the asking price of $499,000.) The other, Lot 2, 0.19 acre and which was not listed and sold for $700,000 because of its size and location overlooking Knoll Estate's tennis court.

Wave After Wave of Snow Dumps 14+ Feet In 6 Weeks!

2008-01-12T10:23:00.000-07:00

With an 80-inch base, nearly six feet of snow in the past week and another eight+ feet in December, the ski conditions are the best in many years. Removing that snow from the streets is an entirely different story as crews in Telluride, Mountain Village and the surrounding region are plowing and shoveling non-stop. For the past two weeks the avalanche danger has been high. There are almost daily reports of incidents, close calls and large, human-triggered avalanches. At least fourteen people have been caught in avalanches since December 30 and at least one resulted in a fatality in the Vail backcountry.

Several of my friends have been hitting the world-class backcountry skiing into Bear Creek in the past week, calling it the best conditions ever. Careful terrain selection, conservative decision making and a large margin of error have kept all my buddies safe.

Uber Luxury Arriving In Telluride In One Year

2007-10-19T12:12:00.000-06:00

Capella Telluride is on schedule for an opening for the Christmas/New Year's season 2008/2009. This translates into the region's only uber luxury hotel being ready for guests in about one year. A model unit will be completed by Christmas 2007. It is the first and only Capella existing in North America.

Furniture and finish packages are ready by the start of the 2007-2008 ski season. The Capella brand is becoming more understood by the public with several recent positive articles and reviews in periodicals including TIME magazine and the Robb Report. The gist of the TIME article is that Capella is an ultra luxury brand fitting the needs of the super wealthy who are bored with Ritz Carlton and Four Seasons properties, among others.

http://www.time.com/time/magazine/article/0,9171,1659722,00.html

This new category is defined not only by price but by distinctive decor, exclusivity, anticipatory and attentive service. The Capella honchos are promising to deliver an authentic Telluride experience that is elegant without arrogance.

The resort consists of 100 hotel condominiums and 48 residences in the Mountain Village core and offers ski-in/ski-out access, a private lounge for owners, an cool and intimate spa, a fitness center, a special pool and hot tub area, two restaurants and an ice skating rink. The 100 hotel rooms average 587 square feet, many with terraces and impeccably furnished. Prices range from $510,000 to $1.75 million. The 48 residences are configured in 2-, 3- and 4-bedroom arrangements with an average size of 2,200 square feet and a price range of $1.75 million to $5.5+ million.

Capella Hotels and Resorts is attempting to set a new standard of luxury in the hospitality industry serving the very top-tier travellers and property owners. Capella offers the unique benefits of the finest boutique hotels, including superb architecture and interior design, privacy, individualized service and attention to detail – combined with the amenities and activities of the world’s great luxury hotels and resorts. There are nine other Capella properties that are either under construction or recently opened including in Singapore, Cabo San Lucas, Ireland, Germany and Austria.

Over A Foot Of Snow Blankets Telluride

2007-10-18T13:44:00.001-06:00

Telluride’s first big snow of the season dropped nine new inches Tuesday night and several more inches last night and today, leaving the snow depth on top of Gold Hill at more than a foot. Following heavy snowfall on the peaks and several dustings in town over the last few weeks, this storm settled in and blanketed the entire valley white.

The ski area has made more than $850,000 in snowmaking upgrades this season allowing for vastly improved coverage and quality. The resort has run new snowmaking water lines for both sides of the mountain, added eight new SMI Super Polecat fan guns and 11 new Ratnik Snow Giant air/water guns.

Telski also recently purchased three new Prinoth snowcats, two BR350s and one Sherpa Winchcat. In total, the resort has allocated more than $1.35 million to these two projects.

Telluride is scheduled to open on November 22. Keeping with tradition, Donation Day will take place on November 21 with all proceeds going to the Telluride Ski & Snowboard Club.

The Upside of a Down Market

2007-10-11T16:03:00.000-06:00

Robert Frank, the Wall Street Journal's Wealth reporter recently penned a book entitled "Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich". He captures the essence of this fast growing demographic. A look back to the 1990s and those smart enough to purchase then have done very well. That time was a great window of opportunity to purchase luxury real estate. We're in another similar cycle as the mid-1990s.

My take: what's being touted as one of the worst housing crises in several decades is also one of the best times to be eyeballing luxury real estate. There are more one-of-a-kind properties, great values and more time to decide. It's a perfect storm for buyers who are relatively immune to interest rates and credit cycles.

Mr. Frank says that the fact that real estate is discretionary for the rich is its strength and weakness. The wealthy do not have to buy. Lifestyle motivates their real estate purchases. The luxury market in a place like Telluride continues to move up, not down with several recent eight-digit sales ($10m and $13m homes in Mtn Village, $13.4m home in the Preserve, $13+ million ranch home on Wilson Mesa and $26 million sale of a 1,200+ acre ranch (vacant land) about a week ago.

There are more rich households on the planet than ever before and that market continues to grow. According to Frank, the number of millionaires and billionaires has doubled in the past ten years. In terms of wealth building, very few items do as well as luxury real estate.

Frank cites a recent study conducted by Capgemini and Merrill Lynch, which shows that those with investable assets of least $1 million increased their real estate holdings in 2006 by 50 percent, increasing the percentage of real estate in portfolios from 16 to 24 percent. "That tells me the wealthy are seeing opportunities in this market, they see this market as a time to put more money in at a time when others are taking it out," he says. "What benefits the wealthy are long term investments that will appreciate over time. That's how the rich see real estate and that's why even if they can't remember the last downturn, they know that real estate is a great long term investment."

Vacant Land Sales in Aldasoro Spike

2007-10-08T10:28:00.000-06:00

Currently there are 12 lots for sale in Aldasoro with an average Days On Market of 420 days and a median asking price of $945,000. If you backout a unique 36.78 acre parcel asking $3.195 million that has been on the market for 487 days, the median asking price of the remaining 11 lots for sale drops to $915,000.

Two lots are currently under contract. Lot 126 sits on 2.61 acres and is asking $949,000 (originally priced at $995,000). It is scheduled to close October 19th. The second lot is lot 156 and sits on 1.82 acres. It is asking $789,000 (originally priced at $950,000) with a scheduled closing of April 1, 2009. These two lots have been on the market for 552 days and 452 days respectively.

So far this year seven lots in Aldasoro have sold, including three this summer. The median sold price of those three properties is $850,000 with a median lot size of 4.18 acres. Last year at the same time there was only one lot sale in Aldasoro. Still, with 11 parcels for sale, that is over a year’s worth of inventory to be purchased.

Vacant Aldasoro lot sales do not seem to have seasonal fluctuations lately as about half the lots in the past year have sold this past winter/spring versus summer/fall.

Telluride Real Estate Versus National Outlook

2007-09-23T16:03:00.000-06:00

Nationally there is excessive housing inventory and the absorption rates have definitely slowed. The national housing market has a signficant way to go on the downside. Just as appreciating home prices led to increases in consumer expenditures, it is likely that depreciating home prices will lead to decreases in consumper spending. The stock market has difficulty ahead. Add the signficant credit turmoil currently on the table along with more fallout expected in the coming months and it leads to a negative effect on the national pysche BUT to appealing purchase opportunities for savvy investors sitting on cash (some of my clients are already in that mode). Whether it's Telluride or some other place that interests you, now would be a good time to have a sharpened focus on real estate, especially those who are cash-heavy that could be used to purchase real estate that should offer compelling returns in five years.

Locally, we are also slowing down (# of transactions YTD down 12%; and down 28% for the month of August). It remains to be seen if this national marketplace and the Telluride marketplace are going to go into a meaningful decline. My local outlook is that we are going to see price corrections in the Telluride marketplace into next spring yet at the same time, super high-end properties will continue to sell here ($7.5m, $10m, $13m, $13.1m, $14m in the past 60 days).

Obviously some forms of corrective action are needed in order to have these issues remain as short-term problems. Otherwise it will be very corrosive to the economy.

Town of Telluride Condo Market

2007-08-15T22:26:00.000-06:00

The current Telluride condo market sales activity is slower than last year. In 2006, 60 condos totalling $49.18 million sold through July. This year 42 condos totalling $38.1 million sold through July. If you backout pre-construction contracts, currently there are 13 condos under contract in town with a median asking price of $1.125 million. Of those 13, there are five three-bedroom units under contract. The median asking price of those five properties is $1.425 million.

Some clients have asked if the subprime lending correction has affected Telluride. To a small degree it probably has but while the country is experiencing an overdue but necessary correction to the marketplace, many buyers here in Telluride have the net worth to make a purchase using portfolio lenders. "Household name" lenders have tightened standards. While higher rates are back, a person with good financials gets a good loan.

Mountain Village Land Sales

2007-08-13T12:25:00.000-06:00

Compared to the same time last year (through July), vacant land sales in Mountain Village are DOWN 59.6% in number of transactions (47 versus 19) and DOWN 54% in dollar volume ($47.6m versus $21.96m).

Ophir Real Estate Versus Deed-Restricted Property

2007-07-18T23:07:00.001-06:00

Here's an interesting fact about Ophir versus deed-restricted property within 20 minutes to Telluride:

Median asking price per square foot of all single-family homes for sale in Ophir: $278

Median asking price per square foot of all deed-restricted property in the area: $384

That's a 38% difference.

Median asking price of all deed-restricted improved property is $439,500.

Median asking price of all improved property in Ophir is $599,000. All are single family homes on roughly 7500 square-foot lots.

All info based on data from the Telluride MLS.

July 2007 Update

2007-07-17T15:55:00.001-06:00

The latest real estate data for the Telluride region through June 2006 has just been posted. Overall the number of transactions is down 11% and the dollar volume of all sales is down 4% for the year. However, sales for the first 12 days of July exceeds $53 million. Last year, all of July's sales totalled $60.2 million.

Personally, I closed on two transactions within the last week, have three more under contract and am about to negotiate on at least four properties within the next week or so.

Other helpful info: There are 20 ski-in/ski-out vacant lots for sale with a median asking price of $2.3 million. There are 60 three+ bedroom condos for sale in Mountain Village with a median asking price of $3,025,000. That does not include the several condos that are for sale or will be for sale at the new developments like Capella and Silverline.

Excluding pre-construction contracts, there are 12 3+bedroom condos under contract in Mountain Village with a median asking price of $3.45m. Since January, 29 3+bedroom condos have sold.

Mountain Village Rec Center Upcoming Vote

2007-05-03T08:18:00.000-06:00

In late May, Mountain Village has a big choice to make with the Rec Center. Are we going to work hard to build a sustainable community, or are we going to let the Village Core continue to struggle along? Delaying this project definitely is not a good thing. The Rec Center is certainly in the public’s interest. As a community center, it reflects the common good and will be the dwelling place of civic life in the Village. Watch the acclaimed movie “Lost People of Mountain Village” to understand the distinct consequences if the Rec Center is voted down!

We ought to stop carping and instead enjoy an exciting water sports and entertainment facility in the heart of our town. The location is even better than the old site because of the direct link to the gondola transit systems. Like it or not, we are on the brink of entering into a major new chapter of Mountain Village and Telluride’s future too. We enjoy country living in an amazing place but part of it must entail reinvigorating the reliance of public transportation. Part of it must entail the integration of a studiously composed community/tourist facility which finally catapults into reality a meaningful gathering place in Mountain Village.

We act like cars will be around forever. Limiting vehicle trips is part of my consideration in voting for this project too. The Rec Center illustrates the right type of planning. We are on the leading edge of reducing the parking lot utopia so prevalent around America.

It also is a real opportunity to create a unique cornerstone. There is nothing else like it anywhere in the ski industry. The opposition claims it costs too much to build and operate because locals and tourists will not use it. Contrary to wishful thinking, they fail to acknowledge the stark truth that the number of local families is quickly growing, that Baby Boomers are spending more time here, that global warming is having a serious impact on the ski industry, and the sad truth that much of America is composed of places we do not really care about. Here, in Mountain Village, the community finally has something we can fully wrap our arms around and it’s not a McMansion!

I know many people who are excited that, at any time of the year, they will finally be able to take their children to more than the library, the historical museum, the Nugget, the bike path and the video store (all good places) over and over again. Where do kids go to hang out in Mountain Village? While I am not looking forward to heaving a gutter ball down the bowling lane, I can’t wait to dust off my surfing skills and drop in on all the local grommets looking for the epic wave. Vote Yes!

Valley Floor Update

2007-04-02T11:20:00.000-06:00

There is still $3 million to raise even though the self-imposed deadline was March 30th. It is very impressive that a huge amount of money has been raised. It says quite a bit about this community and cause. Without going into detail here, there has been a mismanaged, long-term process in attempting to condemn the land. Beyond that, some unthoughtful community members really have come out of the woodwork to proclaim that if people do not contribute to the Valley Floor effort, you're soul-less and hurting the community. Lesser egos and smarter people realize that there are myriad ways that people, some anonymous, richly contribute to the community. It is gratifying to see people who have contributed little or nothing to this community finally step up to the plate. Regardless, it is a big plate and it really boils down to securing the six- and seven-digit donors.

Barring any changes by the judicial system (the landowner appealed the whole process to the Colorado Supreme Court last week), we will have permanent open space but at the extraordinary cost of other entities and institutions. Some people are beginning to say that various local non-profits will suffer. I am not sure about that yet. However, the elementary school is in serious need of a new location within 5 years with no site established. The med center has some less attractive options that will ultimately prove to be much more expensive for the community. These two facilities' futures (and others) will be a by-product of poor negotiations between town and the Valley Floor landowner. Beyond that, spending $100 million+ on various future facilities/infrastructure/debt service by a town that collects approximately $4 million/year in sales tax, $5 million in real estate transfer tax and $325,000 per year on property tax collections puts the future financial crunch in serious perspective.

Quick Market Update - Properties Contracting

2007-03-23T13:32:00.000-06:00

Aldasoro, above the airport, is very active with five properties (lots and homes) recently contracting for as much as $5.95m. A 35-acre Sunnyside parcel (east of Aldasoro) just contracted, asking $3.45m.

Five Idarado parcels (east of town in the Box Canyon) are under contract asking about $1.5m on average.

Mesa property sales are increasing with some recent high-priced properties contracting earlier this week including a 19,000 square-foot horse property on 17 acres for $13.9m and a beautiful five bedroom home on 12 acres for $5m.

Several properties in town are under contract including the Last Dollar Saloon building asking $4.475m, Honga's old space at $4.65m, the Fat Alley BBQ building for $1.995m, the historical train depot where Harmon's used to be for $4.95m, and various homes and condos.

Mountain Village is seeing consistent sales in all categories with several Peaks hotel/condos under contract (basically in the $550k range), two $7+ million homes, several new See Forever townhomes in the $3-5m range, various homes in the $1.6 - $4m range, some golf lots and several other condos.

Telluride Area Homes

2007-02-08T16:47:00.000-07:00

Visit our wesite at www.tellurideareahomes.com

Whether you are a never-ever to Telluride, a veteran visitor or longtime local, I can find a property suitable to all your needs. This is a magical area and I want to help you make it a permanent part of your life. I am entirely committed to all my clients, buyers or sellers, and will always represent you honestly and wholeheartedly. Use this site as an introduction to Telluride, educational tool or information source, and for a greater perspective of this very special place, give me a call 970.708.2157 or send me an Email.

Mike Shimkonis
On Top of Telluride

Telluride Association of Realtors November 2006 Market Update