Brian O’Neill’s Real Estate Market Update

Double Rainbow in the Telluride Valley

Through April, our market has had it’s slowest start in 5 years except for 2009. Much of this is due to the large flurry of activity in the second half of 2012 where buyer’s snatched up the better values in the market. During that period we saw the Town of Telluride as the most active segment, particularly homes in Town. New buyer’s in our market this winter are choosing to return in the summer before they purchase. This cycle will be the new norm and we will find that more of our business will be done in the second half of the year. In the future, the savvy contrarian buyers will recognize the first half of the year as a good opportunity to purchase.

Properties priced well continued to sell this winter, particularly in the Mountain Village condo market where projects such as Tristant have been very active. Slowly, values have started to enjoy some gentle appreciation in market segments with reduced inventories. Recent activity points towards a strong summer with buyer’s not only making value plays but also acquiring larger properties.

There has been a recent flurry of activity on development sites including the “Rosewood” site behind the Peaks, the “Post Office” lots next to the Post Office in Town and the “Four Corners” site in Town which would include Baked in Telluride, Village Market, the collapsing stone building below the market and a few other parcels adjacent to these properties. They all are slated for hotels and Four Corners would also include retail, educational and parking components. An interesting indicator of market momentum where investors are recognizing increased sales energy in development projects such as Element 52/Auberge Resorts.

The following are a few market points:

Year to date, we are down 17% in dollar volume from last year and down 11% in the number of transactions.

The average transaction dollar amount is down 7% year to date.

The average dollar amount per transaction for homes in Town, year to date over year to date, is down 60% and total dollar volume is down 70%. This is due to depleted inventory, in turn causing lot sales to increase in Town.

The average price per condo in MV is up 44%, year to date, as larger units become popular once again.

The median price per square foot for MV condos in 2011 was $386 and in 2012 was $423.

There are significant sales soon to be recorded in Town for homes and land as well as in Aldasoro, Idarado, and Element 52.

There are a number of interesting statistics in our new property ledger, Truly Telluride, which can be found at: http://issuu.com/tellurideproperties/docs/truly_telluride_volume_35?e=5121922/2611472 .

If you would like to monitor our market very closely and specific market segments, please feel free to go to my comprehensive and user friendly website Brian.SearchTellurideRealEstate.com .

Air service has been improved again this summer with more flights and larger aircraft from markets such as Atlanta, Chicago, LA and Dallas. See: http://us6.campaign-archive2.com/?u=ae8f2a252365d516c8610a557&id=ccff9ee92c&e=63b548d749

Telluride was ranked #5 overall in 2013 in the largest reader poll in the industry, Ski Magazine. http://www.skinet.com/ski/galleries/resort-guide-2013-west?i=55581436&s=27

Telluride schools were ranked #4 in the state behind 3 private schools making it #1 for public schools in the state. http://www.telluridenews.com/articles/2013/05/06/news/doc5182f3af2ded2899385766.txt

Summer booking numbers are ahead of last year by 15-19%. See the following link for a calendar of summer events: http://www.visittelluride.com/festivals-events

 

 

Steve Cieciuch’s First Quarter 2013 Market Analysis

written by Steve Cieciuch, Director

Coming off the heals of a very strong 4th quarter in 2012, anticipation of continuing momentum in 2013 was high. Unfortunately, the snow Gods went on hiatus and our ski season started off with the least amount of snow I have witnessed in 23 years. Its always tough to gain momentum given such circumstances and the proof was in the pudding with a lackluster January of $9.7M in total sales volume.  In addition to the poor snow conditions, I believe there was a bit of a buying hangover in the first quarter of 2013. The fast and furious pace to effectuate sales before year end of 2012, in part prompted by pending capital gains tax increases for sellers and buyers converting stock market gains into hard assets, brought more buyers to the closing table than previously witnessed throughout the first three quarters of 2012.

As the snow improved in February, closings did as well, as total sales volume jumped to $22.4M a 19% increase in dollar volume and an 18% increase in transaction volume versus February 2012.  Although March increased in dollar volume by 29% over February, it declined by 18% in dollar volume and 17% in transaction volume versus March 2012.

Notable sales in the 1st quarter of 2013 included:

Town of Telluride

Address	Sold Price	Asking Price	% off Asking Price	SQFT	Beds/Baths	Price/s.f.	Days on Market
127 S. Oak B	$1,475,000	$1,795,000	5.6%	2,433	4/4.5	$606	466
Element 52 W102	$1,775,000	$1,895,000	6.3%	1,884	3/3	$942.14	720
713 E Columbia	$1,131,250	$1,450,000	22%	1,834	2/2	$616.65	258

Mountain Village

Address	Sold Price	Asking Price	% off Asking Price	SQFT	Beds/Baths	Price/s.f.	Days on Market
See Forever Village A206	$1,438,000	$3,600,000	60%	2,498	3/4	$575.66	837
Pine Meadows 126	$1,217,500	$1,595,000	24%	3,508	4/4.5	$347.06	721
110 SnowDrift	$5,250,000	$7,990,000	34%	8,481	6/7.5	$619	1,283
111 Autum Lane	$8,700,000	$18,500,000	53%	15,418	9/9.5	$564	484
222 Russel Dr.	$2,750,000	$4,395,000	37%	4,981	5/4.5	$402	2,341

Outlying Mesas

Address	Sold Price	Asking Price	% off Asking Price	Acres	Days on Market
Lot 3 Golden Ledge – Deep Creek Mesa	$1,675,000	$1,950,000	14%	35.01	321

A market sector that has been quite active is Town of Telluride remodel opportunities.  Homes priced between $800,000 and $1,200,000 are limited in supply and offer potential upside based on four sales of homes in 2012 of $1,000 per s.f or greater.   Bank owned opportunities are becoming fewer and farther between, however, one significant bank owned opportunity was swooped up in Mountain Village. A 15,418 s.f. 9 bedroom, 9.5 bath contemporary home closed for $8.7M or $564/s.f., a significant discount and excellent purchase from its original list price of $18,500,000.

The second quarter looks promising with 45 properties in San Miguel County under contract ranging in price from $57,000 in Norwood to $5,700,000 for 472 West Columbia Ave in Telluride. Slowly but surely the market continues to experience an absorption of inventory and depending on the market sector, declining inventory.  The best buys are in market sectors that have a preponderance of inventory such as Mountain Village condominiums or areas currently garnering less attention such as vacant land in Mountain Village and outlying subdivisions.

 

Most of the Market is No Longer Scraping the Bottom

Written By MIke Shimkonis, Director, Senior Broker

 

 

 

 

 

 

 

 

 

 

 

The 2012 year end real estate numbers have just been posted and practically every market segment has shown improvement in 2012, making it the strongest year since the peak in 2007. Nearly $365 million and 444 transactions occurred in 2012 representing a 47% increase in dollar volume for San Miguel County and 16% increase in number of transactions over 2011.

In Mountain Village the dollar volume increase is 69% over 2011 and just a 1% increase in the number of sales. Dollars and numbers showed nearly equal growth in the town of Telluride when adding all segments together and county sales recorded strong dollars, with a smaller increase in the number of transactions sold.

Drilling down deeper, the number of condo sales in town picked up tremendously with a 66% increase in sales yet the dollar volume was nearly identical at $41+ million in that sector, meaning that several less expensive condos sold in town versus 2011. The story is even more remarkable for single family homes in the town of Telluride with a 175% increase in the number of homes sold in 2012 versus 2011 (33 versus 12) and a 46% increase in dollar volume. Apparently town is THE place to be for many buyers. There were several good bank-owned buys in town as well as the largest number of vacant land sales occurring (14) since 2004.

Up on the other side of the ski mountain in Mountain Village, the story is similar as several good single family homes were purchased, many on the golf side of the village, with a 109% increase in number of homes sold (23 this year versus 11 in 2011). Several $5+ million homes sold in the village in 2012 marking a return of strong interest in the luxury home segment. Condos in Mountain Village saw strong activity too as $53 million in sales were transacted versus $46.7 million in 2011 yet 60 condos sold this year versus 75 in 2011. There remains several super bargains on luxury condos in Mountain Village at Elkstone 21, Cassidy Ridge and one remarkable penthouse standout that at one point was worth $3.6 million and now asking $1.795 million, Stargazer Penthouse at the Peaks. There are a few in town too.

One of the strongest signs of a stabilizing real estate economy was illustrated as vacant land sales in Mountain Village (and Telluride as mentioned above) continued to show signs of improvement with a 69% improvement in dollar volume in the village and 100% increase in number of transactions in town. There continues to be excellent land buys in Mountain Village.

Vacant land sales in Aldasoro and Ski Ranches continue to be relatively light, although Aldasoro saw an even number of land sales (3) over 2011. Some of the year’s biggest values were plucked up in single family home sales in Ski Ranches as at least six bank-owned properties were purchased by smart buyers looking for value, privacy and views.

Even fractional sales, long a consistently strong segment of the Telluride market, strengthened further as an average of 1.6 memberships were purchased per month in Telluride and over 5 memberships per month were purchased in Mountain Village.

Unfortunately, the one weak spot is the sale of deed-restricted (i.e. affordable local’s housing) condos and homes in town, the village and the county. Surprisingly few locals have been able to take advantage of historically low interest rates in setting roots here. At the same time, the local rental market has been very active, hopefully indicating that locals are saving money in order to make down payments for deed restricted homes and condos in 2013.

Despite the crazy and shocking news events happening in America and the world, Telluride remains a truly remarkable retreat from the madness. Not knowing that I was writing a year-end real estate market update, I asked my wife earlier today why she likes living here for the past 20 years and her responses ring true with practically all other full time and part time residents: “it’s peaceful, spectacularly beautiful, safe, with an awesome quality of life and excellent school district. I love that you can be outside most of the year. It’s a pleasant environment temperature wise, animal wise, with a meaningful small town feel and lots of fun activities for our family.” I couldn’t have said it better myself!

 

 

Telluride Real Estate Market Update – 2012 Summary

Written by Brian O’Neill, Senior Broker/Director

After a dismal start to 2012 in January and February, the year ended very strong with a 47% increase in dollar volume over last year and a 16% increase in the number of transactions with the average dollar amount per transaction improving 27%. More notable was the fact that dollar volume and number of transactions were the highest since 2007, with almost every market segment improving in 2012 and a few segments even exhibiting slight appreciation.

Home sales in the Town of Telluride were the most impressive market segment with a nearly 200% increase in the number of transactions over last year and almost a 50% improvement in dollar volume. The condominium market in Town saw a strong increase in the number of transactions, but dollar volume remained the same with smaller condominium sales carrying the day, except for a few transactions including the upscale Element 52/Auberge Resorts property. Land sales had a nice uptick as buyers found the depleted home selection reason to build; a sign that our market has turned the corner. Overall, the Town’s dollar volume improved significantly.

The Mountain Village market as a whole enjoyed a similar surge in dollar volume, partially due to the return of larger home purchases. Home sales more than doubled over last year and condominium dollar volume improved slightly, while the number of transactions shrank as buyers moved towards higher priced product. The Mountain Village condominium market remains the most attractive with many great opportunities such as the beautiful log townhomes at Tristant. Land sales also improved noticeably in Mountain Village furthering the general belief that the two town markets have stabilized.

The outlying regions of the Telluride market saw improvement in 2012 with the Ski Ranches and Aldasoro subdivisions leading the way. Vacant land sales on the mesas saw improvement as well, as investors saw an opportunity to diversify their portfolio with dramatic ranch parcels.

Despite a slow snow year, visitors continue to enjoy Telluride and invest in the lifestyle it has to offer. Interest rates remain extremely attractive and the various tax and estate planning benefits that hard assets offer have helped drive the market. As the uncertainty continues to dissipate, it is likely that this market momentum will continue.

 

 

October 2012 versus October 2011

Fall Colors and Fresh Snow on Dallas Divide Near Telluride Colorado

Written by Jesse DiFiore, Broker

Telluride Market

• Monthly Unit Sales:	up 214%, 22 sales now vs 7 then
• Year-to-Date Unit Sales:	up 30%, 212 sales now vs 86 then
• Monthly Dollar Volume:	up 371%, $33M now vs $7M then
• Year-to-Date Dollar Volume:	up 20%, $103M now vs $86M then

Mountain Village Market

• Monthly Unit Sales:	up 78%, 16 sales now vs 9 then
• Year-to-Date Unit Sales:	down 6%, 130 sales now vs 138 then
• Monthly Dollar Volume:	up 140%, $12M now vs $5M then
• Year-to-Date Dollar Volume:	up 54%, $100M now vs $65M then

Oct 2012 Highlights

– Telluride Single family home unit sales are HOT: +700%, 8 this month vs 1 last yr same time. This Oct had the most Oct. Telluride single family home sales since data was entered into our current MLS system in 2003.

Why Now May be the Time to build

With the housing market in recovery mode and new residential construction on the rise, a unique opportunity exists to take advantage of what are still comparatively low material and labor costs while enjoying accelerating appreciation. Whether it’s a new home, addition, vacation home, or a commercial property, analysts agree that those who build now will realize the highest return on their initial investment.

Along with this upward trend, material and labor costs are also expected to increase, making today the perfect time to take advantage of this economic opportunity. Not only will you save money short-term in construction costs, but by building now, you’ll make an investment that will yield a much higher return over time. Comparing the numbers, real estate continues to be a better choice in investing your money than the stock market, especially with recent market performance returns in mind.

There are many benefits to investing in real estate, including leveraging your mortgage to amplify your ROI, the consistency of real estate compared to the volatility of the stock market, and bigger breaks on your taxes. According to a recent article from CNN Money, “If you (or your mutual fund) hold a stock for more than a year before selling, then you owe only a capital-gains tax that tops out at just 15 percent. Second, you can offset any investment losses you realized against your gains on your income tax return.

Interest rates are lower than ever and material costs are remaining relatively steady for now. General contractors are available and hungry for any work they can get, coming off of a two year building slump. “(According to the National Association of REALTORS®) in April 2012, homes changed hands at a record pace of 7.2 million per year, at a median price of $206,000, up 15.1 percent from a year earlier. The last time home prices rose so fast in one year was in November 1980, when prices shot up 15.6 percent,” says Forbes Magazine.

Making the wise choice to invest in real estate this year remains one of the best ways to make sure you get the best possible return on your investment and building a home with a differential – something that sets it apart from other homes on the market – enhances the return. Unique homes are often sold for much more than comparable homes in the same area. Homes with one-of-a-kind features, energy efficiency, and brilliant architecture are providing the best return for home builders. Building your home with energy efficiency at the forefront is a great way to set your investment apart while keeping your heating and cooling costs low over time.

In addition to building “green,” adding an architectural novelty to your home will pack your investment with a high-quality differential, bringing your return even higher. Features such as outdoor kitchens and patios, or unique architectural styles such as post and beam, or timber framing, provide an aesthetic appeal that will lure in potential buyers while providing energy efficiency with the addition of SIPs to enclose the structure. Exposed timbers, quality materials and cathedral ceilings are features that bring your real estate investment the distinction it needs in order to thrive in a growing economy.

For those looking for a strong long-term investment, this is the time to choose new real estate. And if you’re choosing to build, there has never been a better opportunity to engage in a relationship with your architect, builder or home design/build company.

 

New Prices at Cassidy Ridge Average $506/sqft

 

 

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.

 

On Top of Town of Telluride Home Sales

Town of Telluride home sales have been a bright spot in the area real estate market this year, with 22 residences selling year-to-date. Telluride Properties represented 50% of those transactions – fulfilling our company motto to strive not to be the biggest real estate company in town, but the best. Congratulations to the savvy Telluride Properties team and happy new Telluride homeowners!

Town of Telluride Homes Sold YTD (10-5-12)
Contact a Telluride Properties broker for more information

 

Whats Going On With Telluride Real Estate?

Written By – Brian O’Neill, Broker

After a dismal start to 2012 where we were off last year’s dollar volume by 37% in February, the Telluride real estate market has come back to surpass last year’s volume by 11% as of July. Momentum remains strong with roughly $70m under contract from this summer with more to follow. These contracts alone will push us past 2008 and 2010’s figures with several months left in 2012, making this year our best in 5 years.

Much has been made about the success in the Town of Telluride market but Mountain Village has surprisingly been active as well with condo sales performing well due to the incredible values. Homes in Mountain Village have been perceived as sluggish due to the low number of sales but the dollar volume leads the market. A recent uptick in MV home contracts is promising as well.

Until recently, most transactions have been under $3m with the majority less than $2m. This summer we have seen this ceiling raised to the $4m mark. This activity has mirrored Aspen and Vail where their “down valley” markets have been carrying the market. Vail’s market is up 13% from last year where 82% of sales were under $1m this year and Aspen’s market is down 14% where their volume has been hindered by fewer high dollar sales due to a reduction in value plays from last year’s run up.

Telluride Properties continues to increase market share as Senior Brokers have been showing why they are considered market leaders, while many of our junior brokers are enjoying successes that were predicted when brought on board. Operating with sage, conservative intelligence has maintained proper expectations resulting in sales and purchases that have left clients satisfied with their decisions. This approach has furthered Telluride Properties goal of being the best firm not the biggest.

 

Adam Black’s Summer Real Estate Update

Written by Adam Black, Broker

Double Rainbow in the Telluride Valley

The Telluride real estate market is experiencing a recent uptick in activity and overall sales. This claim is backed by closings in all segments of the market, including the high-end, lower price point properties, as well as vacant land. With all segments showing solid movement, our market is on an upward trend. The overall inventory is getting thin in some segments as the best deals are first to move. This is causing a sense of urgency for some buyers, which has not been felt in a while. Many buyers are purchasing with cash funds, but several are using the historic low mortgage rates to their advantage while they last.

Telluride is a unique town which boasts world-class music festivals, bike races, cultural and arts events during the summer, with top rated skiing and night life in the winter. Although still relatively under the radar, the word is spreading about Telluride and how amazing it is, when compared to all other resort towns. The small size, incredible scenery, endless outdoor activities and relaxed atmosphere continue to draw people in, who seemingly never want to leave. The quality of life in Telluride is extremely high as anyone who lives there would tell you. Why go anywhere else?

Book your trip to come and see first hand and you will no doubt want to come back again and again, or maybe even move here full-time! There is only one Telluride.