Happy New Year!
The first half of 2022 had gross dollar sales tracking closely with 2021 and were still positively influenced by Buyers seeking mountain properties as an escape from the pandemic. As the year progressed, COVID was mostly in the rear-view mirror with uncertainties of the global economy taking front stage.
Gross sales totaled $1.1 billion, down 22% from 2021, but 27% above the prior 5-year average. Given nearly a 50% decline in inventory, the decrease year-over-year was to be expected. The silver lining for our market is that the average sales price county wide increased 26% from 2021 to 2022 with an average price per transaction of $1.9 million. Telluride Mountain Village single-family homes witnessed a 40% increase in PSF, Town of Telluride condominiums 28% increase, and Mountain Village condominiums a 41% increase in PSF.
Simple 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 market place both with regard to volume and value.
Telluride Real Estate Corp. produces an in-depth analysis of real estate activity in Telluride and Mountain Village, as well as the surrounding regions. Our Quarterly Reports are YTD data collected on a quarterly basis, and our End of Year Market Report is an in-depth review of how the market performed in the last calendar year. The report is broken down by area so you can find how the market performed in each neighborhood.