The Telluride Market Has Seemingly Traveled Full Circle
It’s fair to say that as 2022 came to a close, the Telluride Real Estate Market was grappling to re-establish its position of value in the post-covid-boom world. Interest rates, inflation, and political unrest had everyone on edge as to what was in store for 2023.
Well, here we are, already through the first quarter of 2023. At first glance, the percentage decrease in number of transactions and dollar volume YTD may seem significant. Yet, as the market normalizes, comparing it to the highs of the boom is an unfair assessment. To put things into perspective, San Miguel County’s dollar volume for the first quarter of 2023 was the third highest on record.
Mountain Village sales accounted for 57% of the dollar volume in the first quarter. The average sales price in Mountain Village increased 36% YTD with price per square foot values also increasing for homes and condos. The Town of Telluride market has inevitably cooled, no doubt due in part to the current restrictions on short-term rental licenses. This was most notably apparent in the number of Telluride condo sales, which were down 65% YTD. On March 29th, the Town of Telluride announced an emergency ordinance halting new construction in certain areas for a period of six months. This moratorium could prove to further restrict inventory and push values even higher.
The buyer urgency experienced during the covid years has certainly waned, but interest has not. With inventory still on the anemic-side, there are a number of buyers still waiting in the wings for the right property to become available. This is evidenced by price improvements on properties that have seen longer days on market, while new and highly desirable offerings are still proving to contract quickly for cash or even relatively low interest rates. Regional inventories will remain thinner until owners experience sharper economic or personal motivations. Until then, most are in no hurry to give up their lifestyle property and safety deposit box with a view.
The Telluride Market has seemingly traveled full circle, returning to pre-financial crisis conditions, with our lack of inventory being the last uncharacteristic element. If you’re a buyer or seller trying to time the market, stop. The best time to buy or sell is as unique to you as your fingerprints. The cost of missed opportunities and enjoyment far outweigh monetary gains.
Telluride is a special place. Your time spent and memories made here are priceless.