Telluride Mid-Summer Market Update
The Telluride market is in a frenzy. Following a month of July that was an astounding 118% above the same month last year ($66.2m compared to $30.4m), the market is now up 52% over the same time frame in 2019. The presumptive trend has been officially brought to the light: people want the Telluride lifestyle, now more than ever.
On the heels of a historically strong economy came the global pandemic, and as uncertainty has become an overlying theme of the past several months – and is likely to persist through the next few – buyers are decisive in their departure from the sidelines. This trend is not unique to Telluride and all across ski country (and across the nation in general) properties are flying off the market at rates unseen since before the 2008 recession. Property ownership has become a priority of millions of Americans, and property ownership in a small town surrounded by mountain peaks has become an obvious decision for many.
In the town of Telluride specifically, low inventory is beginning to take effect on prices as pricing per-square-foot, especially in the single family market in Town, reaches unprecedented levels. As of this writing, only 20 homes are available for sale in Telluride, only 2 of which are available for less than $2m. It is worth noting that while some minor correction of this tremendous activity is inevitable, the effects of this flurry will undoubtedly permeate in the long term. This phenomenon is playing out as a microcosm of the Telluride market as a whole: an ever-growing demand-base meets a finite level of supply. As evidence, properties are trading more quickly than traditionally in Telluride, and at levels close to the asking price in many cases. There is no time to waste for buyers in Telluride right now.
Mountain Village, which entered the summer with a very healthy supply of inventory across the board also saw tremendous activity in July, with a 111% increase over last July. However, the most revealing market trend to come out of last month was the explosion of the “surrounding area” market, which sold 403% more total dollar volume in July than the same month a year ago! Driven by large ranch sales, the “social-distancing” directive is being taken to heart by buyers in our market right now as buyers opt for views, seclusion, privacy and wide-open spaces.
With 80 properties (single family and condo) currently pending in Town and Mountain Village, the market is poised for another healthy push into the fall, with closings lingering into the beginning of ski season. Given the historic trend of a market flurry post-Presidential election and the potential for some degree of clarity surrounding the coronavirus pandemic as we enter the winter, the Telluride market has reason to remain optimistic despite a tumultuous global outlook.
The lifestyle benefits of our quaint community in the San Juan Mountains have long been self-evident but are even more apparent in times like these. Stay healthy, stay safe, and we will see you soon.