Telluride Real Estate Activity Report: Q1 2024

 

If you have been sitting on the sidelines waiting for prices to retreat, the trend is not great; as a rule, year-over-year values and prices continue to rise. Historically low inventory, increasing demand, and marquee developments like the Four Seasons Hotel & Residences portend more of the same for this year and the near future. In spite of only 16 more transactions year over year, in the first quarter of 2024, Telluride experienced an uptick of 46% in Total Dollar Volume vs 2023. As a consequence, the average sale price in our market is up 26% year over year. Sales over $5 million have increased 50% year over year as the upper end of our market carries the day despite persistently high interest rates, which may be impacting the lower end of the market. Ultimately, Sellers continue to maintain control in a market driven by low supply and consistent demand in a highly desirable community.

 

Despite this seller control, it remains critical to price properties well. With a limited amount of inventory, it has become more of an art than a science, and getting it right is complicated. This makes working with a sophisticated advisor in the Telluride market that much more important.

For the same reasons, Buyers have found ample value in working with a sage realtor as their representative. Acting swiftly, efficiently and with knowledge becomes paramount when operating in a low inventory market. Additionally, many properties never hit the market, so utilizing someone who is deeply ingrained in the market becomes even more important. Limited inventory and constant demand keep prices going up. Economics 101.

Anecdotally, Jackson Hole, Aspen, and Vail dollar volume has increased 62%, 35%, and 27% respectively. They have seen their luxury sales increase 50 to 55% year to date. Like Telluride, their inventory is only up 11 to 14% and sales are generally 70 to 82%, cash transactions.

In an age where people are searching for a sense of community, whether private clubs or smaller towns, Telluride continues to maintain its charm and lack of crowds while becoming the platinum standard. As we continue to grow, it is important to know that we will always remain a small community that welcomes part-time residents and visitors as part of our community.