Three of the past five years were COVID-influenced, with average gross dollar sales of $1.2B. A 5-year look back demonstrates $960M / year on average. However, YTD the market has realized a 6% increase over that 5-year average. Therefore, the Telluride marketplace is simply “back to the new normal.”
Even more notable, the resiliency of the market continues with a serious decline in inventory - as much as 50% compared to prior to the pandemic. With this lack of inventory, San Miguel County average sale prices increased 10%, the Town of Telluride achieved a 13% increase and the Mountain Village increased 48%. The latter segment of the market accounted for 51% of total sales volume YTD as compared to 40% during the same period last year. In addition, Mountain Village sale prices a 25% increase. Most notably, Telluride has long experienced investor resistance at price levels above $10,000,000, however, that notion is now in the rear-view mirror with 12 properties closing between $10,250,000 and $18,900,000 YTD.
Simply put, 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.