Telluride Real Estate Activity Report: Q2 2024

 

The tailwinds of the pandemic market that resulted in a scarcity of inventory in 2023 are in the rear-view mirror, even though demand remained relatively strong. The first six months of 2023 witnessed a decline of 25% in gross dollar sales while residential prices remained stable, except for the Mountain Village, wherein the average home price increased by 48%. This sector of the market possessed more inventory, with investors most likely recognizing better value plays. During the first 6-month period of 2024, new inventory entered the market, resulting in a 21% increase in gross dollar sales ($507.8M vs. $419.7M). During this period, Village values remained stable, with the Town of Telluride witnessing a 12% increase in single-family values and 10% in condo values. Thus, comparing mid-year data (2023 vs. 2024), it is apparent that demand has remained stable, and gross dollar production is largely dependent upon the availability of inventory. On a positive note, if sales accomplished in the single-family and condominium markets continue at their respective paces, we have approximately 25% more unit availability for the latter half of 2024 vs 2023.

 

Focusing upon more detailed stats as of 6/30/24, the single-family home market in the Town of Telluride experienced a 70% increase in total dollar volume of sales, and in the Mountain Village, 31%. Town of Telluride condominiums experienced a small decline in total dollar volume, and the Mountain Village a much larger decrease of 48% --- once again the result of a lack of inventory in this market segment. The average price per square foot for sold residences in the Town of Telluride was $2,115 vs. the Mountain Village at $1,510. The average PSF related to Mountain Village condos was $1,320 vs. the Town of Telluride at $2,015.

 

The advent of the Four Seasons Hotel and Private Residences, the Highline Residences, and the Six Senses Hotel and Residences will add significant upscale inventory to our future marketplace. This will result in a significant increase in price levels, similar to those experienced in other major ski resorts with similar high-end products, and will place Telluride in the very top tier of North American ski resorts. Telluride is poised to remain an exclusive and community-centric environment for those seeking the epitome of the mountain lifestyle.

 

Supply and demand economics support that the Telluride real estate marketplace, while from time-to-time experiencing a decline in sales, has remained resilient as to value during economic downturns. The Telluride region is surrounded by federally-controlled property (USFS and BLM) limiting future growth to approximately 14,000 private acres. Virtually all of the private ground is subject to a master plan which allows for the development of fewer than 4,000 single-family equivalents on about one third (1/3) of the above-mentioned ground. This density is but a small fraction of allowable densities in other major resorts and it is this assurance of future controlled growth that positively drives the marketplace both with regard to volume and value.