Through nine months of 2019, the Telluride Market as a whole is benefiting from an influx of late-Summer/early-Fall sales and contracts that bring
us up to just below the market levels of 2018 year-to-date. One especially encouraging segment of growth has been the Mountain Village homes
market, which has seen an influx of activity in the $1.5m-$7m range; 7 properties have sold this summer and another 6 are currently under contract
with 43 still available. Previous to this “bump”, the upper-end Mountain Village market has been a microcosm of the Telluride area: great product at
great values, but demand lagging slightly behind national and metropolitan markets. The exception here has been the strong demand for high-end
properties in downtown Telluride where inventories have been getting depleted while demand flourishes. With numerous properties in all segments
under contract through early October, Telluride is poised for a strong 4th quarter and transition into a new decade.
In a context beyond the 3rd quarter of 2019, the market as a whole is telling an interesting story; one where the current realities of market conditions can be measured in a historical context, one where we can draw comparisons to similar markets and their subsequent trends and patterns, and one where the emergence of sleek, unprecedented new product is driving market segments like never before.
The value of the Telluride Market is self-evident when comparing prices of properties to their counterparts in markets like Aspen, Jackson Hole, the Yellowstone Club and Vail. It is encouraging to note that most of our directly comparable markets (Aspen, Vail, Jackson Hole) are showing increases in values and/or dollar volume similar to the trends we are experiencing.
Although current median price per foot figures are similar to pre-recession highs of 2007, there is one substantial contributor to the upper end of the market in 2019: sleek, modern, new construction product, especially in premier locations. Perfect examples of this trend are sales at 235 E. Columbia, which sold this July for $7.625m ($1,939/s.f.) and the penthouses currently under contract at Transfer Telluride which will close for roughly $8m ($2,000/s.f.). This blueprint could also be applied to Mountain Village where there is a lack of modern, new construction inventory - a savvy buyer could expect tremendous upside by combining a sleek remodel with a premier location. While properties like these are setting local records, Telluride still represents a tremendous lifestyle and investment choice, as evidenced by recent buyers moving out of equity markets and into properties in Telluride; the proverbial “safe deposit box with a view”.
All metrics considered, Telluride remains a transformative destination for many and paradise to all of us who are lucky enough to call it home. There is an infinite lifestyle value here that is immeasurable and memories to be made that could never be reflected on a graph or spreadsheet.
Blog provided by Telluride Area Real Estate.