As of mid-February 2020, our marketplace was at a 13 year high. Although inevitable, we have yet to see how COVID-19 will impact the local real estate market. The good news is there was a 38% increase in dollar volume in Q1 ’20 ($151.84M) compared to the prior 5-year average for Q1 ($110.06M). Looking back on transactions in 2019 vs. 2018 from a value perspective, the major market categories of single family homes and condominiums have appreciated approximately 17% and 11%, respectively.
THE FUTURE OF TELLURIDE REAL ESTATE
So after such a robust start to 2020, what does the future hold for Telluride Real Estate? Post 9/11, we experienced a surge in Telluride real estate activity as families sought safety and refuge in our small mountain community. After all, local demographics show that there is only one resident of San Miguel County per 100+ acres and nearly 75% of the County is federally controlled land (USFS & BLM). Further, given superb planning over recent decades definitively limiting regional density to a fraction of other major resorts and design regulations that demand the highest of quality, the Telluride real estate marketplace has been resilient during times of economic crises.
In short, now is not the time to “throw in the towel” and wait out this pandemic. Never has our “virtual inquiry level” been as active, not only from crowded “hot spots”, but those desiring to exit tax burdened states where they have come to realize they can work effectively from home. The law of finite supply with eventual rising demand will certainly come into play when investors feel safe to travel. We expect an extraordinary number of second homeowners to return for the summer and bring friends with them. While the overall summer “visitations” will be down, we do expect folks will still be coming to enjoy all the myriad of outdoor activities that our resort offers.
Colorado’s Governor has begun to allow in person showings, so we are open for business! We have been exploring new avenues of electronic marketing and investing and polishing our skills in technology that will allow us to connect with investors virtually. Visit our website at www.tdsmith.com as many virtual tours exist to experience exquisite properties remotely, with more on the way. We would also be most delighted to Facetime any property desired in real time.