State of theTelluride Real Estate Market – with Mike Shimkonis, Broker

Written By Mike Shimkonis, Broker

Besides the significant uptick in activity in certain sectors of the Telluride real estate market, some of the best news is that Allegiant Air’s new nonstop winter air service to Montrose from San Francisco (Oakland) and Phoenix will be a huge help in boosting Telluride tourism. Beyond that, the market is certainly picking up with number of transactions year to date in the county up 4% over last year and on pace to be the best in five years. Dollar volume is also up 14% year to date over last year. Biggest movement in activity has been sales of condos and homes in town and, in the past five weeks, a notable increase in condo sales in Mountain Village with new high-end projects recently purchased in bulk from banks now for sale at today’s market prices.

Bank sales aside, having just returned from the Luxury Real Estate conference in Scottsdale, Arizona last week, the higher-end property segments in other markets such as Maui, Jupiter, Aspen, Houston and Short Hills, NJ to name a few are also rebounding or showing solid signs of stability.

In years past, autumn in Telluride can bring slower sales activity but that is certainly not the case this year as several buyers are making serious offers on attractively priced properties and the market in general is indicating strong sales momentum. The proof is in the pudding – case in point, a whopping 54 properties around the county have contracted since September 1, 2012 including 20 various properties in town; 14 in Mountain Village, two in Ski Ranches, five local properties (mostly deed restricted) and about a dozen properties in outlying areas (Ames, Down Valley, Norwood). Again, that’s since September 1st. Buyers who are ready to deploy are finding properties that fit their needs and their pocketbooks. Sellers are finally beginning to see light at the end of the tunnel and those who are priced realistically and cleanly have the best chances of selling. The next piece of this puzzle must be a hearty and abundant pre-season snowfall combined with growing consumer confidence and continued super low mortgage rates of 4% or less.

Except for a short-term run in the town of Telluride, the sector seemingly lagging the most is vacant land sales even though there are promising but sporadic signs of activity. I expect this to increase substantially as inventory of improved properties (like homes for sale on the golf side of Mountain Village) dwindles substantially. There are some remarkable land values in Mountain Village and, for the correct price, in Aldasoro right now.

Looking at the stalwart value neighborhood, Telluride Ski Ranches, home sales have declined slightly since last year (nine sales last year to date compared to six this year), but four homes have sold there this summer, ranging in price from $575,000 to $650,000 – a very narrow range indicative of value buyers looking for bargains and buying up bank owned properties. Now with those gone, land plays are becoming even more irresistible. There are also 42 different bank owned or short sale opportunities currently available in the marketplace according to the Telluride Multiple Listing Service and approximately 80 properties in the San Miguel County foreclosure process. Several properties have been repossessed by banks this summer and are expected to debut in the marketplace in the coming months.

Construction activity is still mostly centered on remodel projects around the region although there are several new construction projects in town, Mountain Village and Aldasoro either in mid process or nearing completion.

Because of each family’s financial and lifestyle circumstances, it’s rare for me to strongly encourage buyers sitting on the sidelines to “giddy up” and make a purchase but this is definitely a ripe time to harvest some choice fruit. Everyone is different but if you have the resources, intentions and serious desire, now is the time to get your money and financing ready while simultaneously contacting your favorite Telluride Properties’ broker in order to pounce on the right property for you and your family.

Hopefully you were able to experience Telluride this past summer or this fall, which offered one of the best autumn colors in years. If not, there’s always this winter, ski season is less than 50 days away! Don’t forget to buy your lift tickets and season passes now at big discounts, especially for kids.