The Telluride Market Update

SPRING/SUMMER 2014

THE TELLURIDE MARKET UPDATE TELLURIDE – MOUNTAIN VILLAGE – IDARADO - ALDASORO – SKI RANCHES – REGIONAL MESAS

Stewart Seeligson

1 TELLURIDE MARKET UPDATE

ABOUT THIS REPORT

T

his report analyzes the residential market for the Telluride region.

Included in the analysis are the homes, condos and single-family home lots sales in Telluride, Mountain Village, Aldasoro, Ski Ranches and Idarado Legacy. Sales activity on the nearby mesas including Sunshine, Wilson, Specie, Iron Springs and Hastings also is analyzed. Commercial property sales, deed restricted property sales, bulk sales and condo hotel room sales in the Peaks Hotel are not considered.

DATA SOURCE

Unless otherwise indicated, the source for all data is the Multiple Listing Service (MLS) of the Telluride Association of Realtors (TAR). The TAR MLS is considered reliable but not guaranteed.

ACKNOWLEDGMENTS

Thanks to the TAR staff, the TAR Board of Directors and the TAR members who maintain the integrity of the MLS. Special thanks to Hanna Penberthy - the development of this report would not have been possible without her commitment to meeting deadlines and dedication to excellence. Photography by Ryan Bonneau and Gal Jurick. Cover art by Roger Mason.

COPYRIGHT Š 2014 STEWART SEELIGSON. ALL RIGHTS RESERVED

2 TELLURIDE MARKET UPDATE

TABLE OF CONTENTS 4 5 6

Regional Map

Market Liquidity

7 8

9

Telluride and Mountain Village

Market Trends

10 11 12 13 14 15

16

Mountain Village Ski Access Segments

17

18

19

20 21-23

A Letter from the Author Understanding Price Per Square Foot

When Properties Go Under Contract

Market Overview Telluride Market Telluride Luxury Market Mountain Village Market Mountain Village Luxury Market

Ski Ranches Aldasoro Ranch Idarado Legacy Regional Mesas 2014 First Quarter vs.

Historical First Quarters All The Numbers - Homes

24 25

26

All The Numbers – Condos and Luxury Markets

27

All The Numbers – Single Family Home Lots

About the Author

The Office of Stewart Seeligson Sotheby’s International Realty

3 TELLURIDE MARKET UPDATE

137 West Colorado Avenue Telluride, Colorado 81435-2100 970-708-4999 Stewart.Seeligson@SothebysRealty.com www.TellurideRealEstateForSale.com

REGIONAL MAP

4 TELLURIDE MARKET UPDATE

A LETTER FROM THE AUTHOR

A

s my real estate brokerage business in Telluride grows, I learn a great deal about the regional marketplace and the people who participate in it. Getting to know my clients has been my most valuable pursuit.

The people who own property in Telluride hail from many states and countries. They have a wide variety of backgrounds, professions, interests and pursuits. But the one thing they have in common is great love for Telluride. I know many people who own property in many different resorts, but none are as passionate about their getaway destination as those who come to Telluride.

So in response to the desire of my clients to be kept up-to-date on the real estate market in the Telluride region, I have developed The Telluride Market Update.

Most of my professional career has been in business development and negotiating transactions. My background, however, is financial analysis and market analytics. By leveraging my business education and work experience, this report attempts to provide the reader with detailed market representations.

Another thing many people who own property in Telluride have in common is that they do not live in Telluride. Often they do not even live in the state of Colorado. Although most of these second homeowners spend as much time as they can in Telluride, they frequently feel detached from what is happening while they are away. They are hungry to catch up on the latest news and gossip. This desire to be updated especially is true for information concerning the Telluride regional real estate market.

I hope you find this report insightful for understanding what is happening in the Telluride region from a real estate perspective.

Please let me know if you have any suggestions of what would be helpful to you for future editions.

Warm regards,

Telluride is a resort market and as such the properties can be quite valuable. People who own second homes and part-time residents often have millions of dollars invested in real estate assets in the Telluride region but struggle to get a clear understanding of what is happening in this remote market.

Stewart Seeligson Telluride Sotheby’s International Realty 5

TELLURIDE MARKET UPDATE

UNDERSTANDING PRICE PER SQUARE FOOT

T

his report includes analysis on Price Per Square Foot. The metric is a useful tool to identify trends in the overall markets and in particular market segments when large numbers of transactions are considered together over a period of time. Price Per Square Foot is also a useful metric when comparing two properties on a true apples-to-apples basis.

Average Price Per Square Foot -­‐ Ski Access Segments $900 $800 $700 $600 $500 $400 $300 $200 $100 $0

2005

2006

2007

2008

2009

Ski-­‐In/Out

2010

2011

2012

2013

No Ski Access

The above graph is a good example of how Price Per Square Foot can be used to understand general trends in a market segment. The graph compares the price per square foot of homes purchased in Mountain Village with Ski-In/Ski-Out access versus homes with No Ski Access. The graph clearly shows that in every year over a nine-year period buyers were willing to pay more for homes with good ski access than homes with no ski access. Given the time span and the consistency of the data, it would be reasonable to conclude from the graph that homes with good ski access generally command higher values on a price per square foot basis than homes with no ski access.

calculated using a population of transactions, which include a wide variety of properties of different age, finish and other attributes. Individual properties may have a combination of these attributes which may make them significantly more valuable or less valuable than average.

Price Per Square Foot also can be a powerful tool when there is a true apples-to-apples comparison between two properties. In a resort market, however, such comparisons are hard to come by. For example, two Mountain Village homes located on adjacent lots may have been built in the same year and be approximately the same size but not be comparable on a price per square foot basis. One home may have excellent ski access, beautiful views, high-end finishes and an appealing configuration while the other home has none of these attributes. In this case, one sale would not be comparable to the other. A newly built condominium project with two identical units in terms of views, decks, finish and location may be the best opportunity to use Price Per Square Foot in Telluride.

Unfortunately, Price Per Square Foot often is used inappropriately or is used to draw conclusions when the metric alone is not sufficient. For example, buyers, sellers and even real estate brokers sometimes will argue that a particular property should sell at a particular price based on the average price per square foot for the relevant market segment. Individual property valuations are not determined by market segment averages, especially in segments with relatively few transactions, as is often the case in many of the Telluride market segments. Price Per Square Foot averages are

Expert knowledge of the individual subject properties and the market is essential to use Price Per Square Foot appropriately.

6

TELLURIDE MARKET UPDATE

MARKET LIQUIDITY

L

iquidity is a measure of how quickly an asset can be sold for a market-determined price. The most liquid markets are those with the most price transparency and the most fungible assets. A good example of a liquid market is the New York Stock Exchange, where on any day one can buy or sell shares of stock quickly and easily for market-determined prices. Art often is considered to be among the most illiquid assets because it can be difficult to find a buyer for a piece of art and, in most cases, difficult to determine value. In an illiquid market, such as the art market, extended periods of time often are required to sell an asset.

Most real estate properties are relatively illiquid assets because properties are not quickly sold for marketdetermined prices. The most liquid real estate markets are found in large urban areas where there are many buyers and sellers transacting in a marketplace. In such liquid markets there is a great deal of price transparency, which affords quicker transactions. By contrast, resort markets tend to be far less liquid than large urban areas.

This is true of Telluride.

A good measure of the liquidity in a particular real estate market is Days on Market (DOM). This metric measures the average number of days that were required for a property to sell in a marketplace. In liquid markets, fewer days are needed to sell a property than in illiquid markets.

Days on Market

900 800 700 600 500 400 300 200 100 0

2005

2006 Telluride Homes

2007

2008

2009

Telluride Condos

2010

Mountain Village Homes

The bar graph above shows the average number of DOM of the four market segments that are generally the most liquid in the Telluride region — Telluride homes, Telluride condos, Mountain Village homes and Mountain Village condos. Over time, the Telluride condo segment has proven to have the lowest DOM and thus to be the most liquid segment in the Telluride region. In fact, the graph reveals that DOM for the Telluride condo segment has been relatively stable over the last nine years. The same is not true of the other

2011

2012

2013

Mountain Village Condos

three segments. For example, the Mountain Village home segment consistently required fewer than 400 days prior to the downturn for the sale, but that number has now doubled to become the most illiquid of the primary segments. It also is notable that, despite most market segments bottoming in 2009 and beginning their recovery in 2010, the average DOM required to sell a property has grown longer through the recovery in all primary segments with the exception of the Telluride condo segment.

7

TELLURIDE MARKET UPDATE

WHEN PROPERTIES GO UNDER CONTRACT

I

n most markets the peak contracting periods for residential properties are in the spring and summer. This peak period is driven by the desire of families to be moved into their new home prior to the start of the new school year.

The driver for the contracting periods of Telluride differs significantly from other markets. Purchases of real estate occur during and just after peak visitor periods. The two peak visitor periods in Telluride are from Christmas week through the third week in March and then from the first week in July until the third week in August. Most buyers tour properties during one or more of their visits to Telluride and make offers during their visit or soon after their return home.

Date When Proper-es Contract 0

2

4

6

8

10

12

14

First Half of January Second Half of January First Half of February Second Half of February First Half of March Second Half of March First Half of April Second Half of April First Half of May Second Half of May First Half of June Second Half of June First Half of July Second Half of July First Half of August Second Half of August First Half of September Second Half of September First Half of October Second Half of October First Half of November Second Half of November First Half of December Second Half of December

The graph above depicts when residential properties in Telluride and Mountain Village went under contract during 2013. The blue months represent those periods of activity that resulted from winter marketing activities. The green months are the periods of activity related to summer marketing. More properties contracted in the summer (85) than in the winter (81).

The three biggest periods for contracting residential property in 2013 were the second half of April, the first half of July and the second half of August. The slowest three periods for contracting were the first half of March, the second half of March and the second half of May.

8 TELLURIDE MARKET UPDATE

TELLURIDE AND MOUNTAIN VILLAGE

T

he towns of Telluride and Mountain Village have remarkably different histories but their recent economic stories are closely intertwined. The mining town of Telluride was founded in 1888 while the Alps inspired Mountain Village was incorporated in 1995. Despite the difference in age, neither area had significant real estate value forty years ago.

The assessed valuation of the entire Town of Telluride was only $599,000 in 1971 (1). At that point, there was little, if any, real estate development in the area that is now called Mountain Village. Development of the Telluride Ski Resort in 1972 dramatically changed the real estate values of Telluride and the area that is now Mountain Village. By 1976, the valuation of Telluride had grown nearly ten fold to $5.797 million (1).

The opening of the ski resort was also a boon to the acreage southwest of Telluride in what is now Mountain Village. Approximately 600 single-family home lots were entitled and sold in the new resort. Additionally, a large commercial plaza at the base of the ski mountain was developed. Today the two communities are worth more than $1 billion. $350,000,000

Total Dollar Volume Comparison of Mountain Village and Telluride Residen7al Sales

$300,000,000

$250,000,000

$200,000,000

$150,000,000

$100,000,000

$50,000,000

$0

2005

2006

2007

2008

2009

Total Dollar Volume in Telluride

2010

2011

2012

2013

Total Dollar Volume in Mountain Village

The graph above compares Total Dollar Volume of lot, home, and condo sales in Mountain Village and in Telluride.

Illustrating the enormous growth of area real estate values, in 2007 the overall real estate sales for Telluride had risen to almost $150 million while Mountain Village soared to approximately $300 million. The Great Recession fiercely impacted both municipalities with approximately a two-

thirds-reduction in overall sales in both markets. Although property values pulled back in most segments, a reduction in the number of transactions was the larger determinate in the overall reduction of both markets. Last year, both Mountain Village and Telluride had sales of approximately $100 million.

(1.) The Telluride Ski Area, Inc. (1980). Ski Area Master Plan for the Telluride Recreation Area. Telluride, CO.

9 TELLURIDE MARKET UPDATE

MARKET TRENDS

MARKET TRENDS - 2013 VERSUS 2012 Number of Sales

Sales Dollar Volume

Average Sales Price

Average Sales Price as a Percentage of Asking Price

Average Price Per Square Foot

Telluride

Mountain Village

Nearby Neighborhoods

Regional Mesas

INDIVIDUAL SEGMENT PERFORMANCE - 2013 VERSUS THEIR RECENT HISTORY COLD AVERAGE HOT

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10 TELLURIDE MARKET UPDATE

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MARKET OVERVIEW

T

he Telluride regional market segments often seem to perform independently of one another. Historically, for example, there has been a cyclical nature of buyer preference for the Town of Telluride versus Mountain Village. A more recent example is the varying rates at which each of the individual segments of the region has been recovering from the downturn of 2008-2009. This report analyzes all of the residential segments individually but first it is important to put the performance of each segment in the context of the overall market.

Overall Residen-al Market

$600,000,000

400 350

$500,000,000

300 $400,000,000

250

$300,000,000

200 150

$200,000,000

100 $100,000,000

$0

50

2005

2006

2007

Total Dollar Volume

2008

2009

# of Sales

The graph above depicts the overall performance of the residential sector of the Telluride region. The regional market peaked from 2005 through 2007, then fell precipitously in 2008 and finally bottomed in 2009. Since the bottom, the market has been steadily recovering over the last four years in terms of total dollar volume and the number of transactions.

The year 2012 was particularly encouraging with almost $300 million in total dollar volume on 234 transactions — the best overall year since 2007. Although 2013 pulled back from a relatively strong 2012, it outperformed 2009 and 2011, which kept the two-period moving average trend line positive for the fourth consecutive year. The performance of 2014 will determine whether the trend line continues its upward climb from 2009 or shows signs of a negative tendency.

2010

2011

2012

2 per. Mov. Avg. (Total Dollar Volume)

2013

0

The Telluride regional residential market primarily is driven by real estate purchases by individuals seeking vacation properties. That means many non-local economic forces such as the profitability of the equity markets and the energy markets influence the relatively small local real estate market.

Recent data suggests that the most dominant geographical areas of vacation property owners include New York, Denver, Houston, Dallas, San Francisco, and Phoenix. These geographic ownership areas change over time.

The vitality of the Telluride real estate market also is impacted by social influences. Telluride has benefited recently from numerous mentions in esteemed media such as Forbes, Condé Nast and Ski Magazine for its ski resort, nightlife, ambiance and stunning mountain setting.

11

TELLURIDE MARKET UPDATE

TELLURIDE MARKET Sales Ac)vity -­‐ Telluride Single Family Homes

$80,000,000

40

$60,000,000

30

$40,000,000

20

$20,000,000

10

$0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

$80,000,000

0

# of Sales

Sales Ac)vity -­‐ Telluride Condos

100 80

$60,000,000

60 $40,000,000 40 $20,000,000 $0

20

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

# of Sales

Sales Ac)vity -­‐ Telluride Single Family Home Lots

16

$12,000,000

12

$8,000,000

8

$4,000,000

4

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

$1,200

The Telluride single-family home lot segment is closely related to the Telluride home segment. Demand for luxury homes in Telluride in 2010 and 2011 led to a historic spike in lot sales in 2012. Some purchases were for the purpose of speculative building — a strong signal of confidence in the single-family home market.

0

# of Sales

Average Sales Price Per Square Foot -­‐ Telluride

$1,000

The line graph on the left shows considerable correlation between the condo segment and the home segment in Telluride on a price per square foot basis. Since 2005, the Price Per Square Foot for homes in Telluride has been higher than that of condos. In 2009 and 2011 the Price Per Square Foot for homes and condos were nearly identical.

$800 $600 $400 $200

The condo segment of Telluride has not yet fully recovered relative to the peak in 2006. However, the segment is trending upward and is one of the healthiest of all regional segments with at least 40 units selling in each of the past four years.

0

$16,000,000

$0

The Telluride single-family home market has been the stalwart of the recovery in the region with at least 20 homes selling for each of the past four consecutive years. Of particular note is the peak in 2012, when 34 homes sold — the most homes sold in a single year for more than a decade in Telluride.

2005 2006 2007 2008 2009 2010 2011 2012 2013 Condos

Single Family Homes

12 TELLURIDE MARKET UPDATE

TELLURIDE LUXURY MARKET Sales Ac)vity -­‐ Telluride Luxury Homes

40

30

For the purposes of this analysis a luxury home in Telluride is a single-family home that sells for $3 million or more. Over the last nine years the luxury segment of the Telluride home market has averaged 20% of all homes sold. In each of the last two years exactly 20% of the homes sold were luxury homes with seven luxury homes sold in 2012 and five sold in 2013.

20

10

0

2005

2006

2007

2008

Over $3 Million

2009

$2 -­‐$3 Million

2010

2011

2012

2013

$0 -­‐ $2 Million

Sales Ac)vity -­‐ Telluride Luxury Condos 100 80

A condo that sells for more than $2 million is considered a luxury condo for this analysis. Despite the downturn and a still-recovering Telluride condo market, more luxury condos have sold in the last three years than during the three-year peak period of 2005 to 2007.

60 40 20 0

2005

2006

2007

2008

Over $2 Million

2009

2010

$1 -­‐ $2 Million

2011

2012

2013

$0 -­‐ $1 Million

Average Sales Price Per Square Foot Telluride Luxury Market

$1,400 $1,200

Unlike the overall Telluride market where homes consistently have a higher Price Per Square Foot compared to condos, this graph of the Telluride Luxury Market demonstrates that the Price Per Square Foot alternates between luxury homes and luxury condos.

$1,000 $800 $600 $400

2005

2006

2007

2008

Condos Over $2 Million

2009

2010

2011

2012

2013

Homes Over $3 Million

13 TELLURIDE MARKET UPDATE

MOUNTAIN VILLAGE MARKET $160,000,000

Sales Ac)vity -­‐ Mountain Village Homes

50 40

$120,000,000

30 $80,000,000 20 $40,000,000 $0

10

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

The Mountain Village single-family home segment has struggled to recover from the downturn. While 2010 and 2012 both showed encouraging signs of recovery, in each of the following years fewer than ten homes sold.

0

# of Sales

Sales Ac)vity -­‐ Mountain Village Condos $120,000,000

120

$100,000,000

100

$80,000,000

80

$60,000,000

60

$40,000,000

40

$20,000,000

20

$0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

The condo market is the healthiest segment of the Mountain Village market. This segment is the only primary segment of the Telluride region that improved in 2013 over 2012. While still not fully recovered from the downturn, the metrics of total dollar volume and total sales continue to trend upward.

0

# of Sales

Sales Ac)vity -­‐ Mountain Village Single Family Home Lots $80,000,000 80 $60,000,000

60

$40,000,000

40

$20,000,000

20

$0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Value

After peaking in 2006, the Mountain Village single-family home lot segment notably fell the next year when other segments enjoyed signs of a sustained peak through 2007. Since the downturn, the single-family home lot segment only sporadically has shown signs of real improvement.

0

# of Sales

Average Sales Price Per Square Foot -­‐ Mountain Village $1,000 $800

The Mountain Village condo segment and home segment are on different paths to recovery from the downturn. On a price per square foot basis, however, the two segments show significant correlation.

$600 $400 $200

2005 2006 2007 2008 2009 2010 2011 2012 2013 Condos

Single Family Homes

14 TELLURIDE MARKET UPDATE

MOUNTAIN VILLAGE LUXURY MARKET Sales Ac)vity -­‐ Mountain Village Luxury Homes

50 40

The Mountain Village Luxury Home segment consists of homes sold for more than $5 million. Over the course of the nine-year period illustrated, the luxury segment was 21% of the total home market in Mountain Village. The largest percentage of luxury homes sold was in 2010, when 42% of all buyers paid at least $5 million for a home in Mountain Village. One quarter of the homes sold in 2013 were in the luxury segment.

30 20 10 0

2005

2006

2007

Over $5 Million

120

2008

2009

2010

2011

$3 -­‐ $5 Million

2012

2013

$0 -­‐ $3 Million

Sales Ac)vity -­‐ Mountain Village Luxury Condos

100

The Luxury Condo segment of Mountain Village consists of those properties sold for $2 million or more. The luxury portion of the Mountain Village condo segment has been spotty since the recovery commenced in 2010. From 2005 through 2008, 20% of all condo sales were luxury condos.

Since the downturn, however, the highest percentage of Luxury Condo sales in a single year was in 2012 with 17%.

80 60 40 20 0

2005

2006

2007

Over $2 Million

2008

2009

2010

$1 -­‐ $2 Million

2011

2012

2013

$0 -­‐ $1Million

Average Sales Price Per Square Foot Mountain Village Luxury Market

$1,400 $1,200

The adjacent line graph tracks Price Per Square Foot of Luxury Homes and Luxury Condos in Mountain Village since 2005. On average, the luxury segment in Mountain Village commands nearly identical price per square foot for both homes and condos. Visual analysis illustrates that Price Per Square Foot of the Luxury Condo segment is often a leading indicator of the Luxury Home segment.

$1,000 $800 $600 $400 $200

2005

2006

2007

2008

Condos Over $2 Million

2009

2010

2011

2012

2013

Homes Over $5 Million

15 TELLURIDE MARKET UPDATE

MOUNTAIN VILLAGE SKI ACCESS SEGMENTS

T

he Mountain Village single-family home market is comprised of Ski-In/Ski-Out, Ski Access and No Ski Access properties. Ski In/Ski-Out properties are located adjacent to a ski run with the residence usually within 25 steps of the ski run itself. Ski Access properties are located within an easy walk of a ski run. No Ski Access properties are not within easy walking distance of a ski run and generally require some form of transportation to access a ski run of the resort.

Sales Ac0vity -­‐ Ski Access Segments

45 40 35

Number of Sales

30

Over the last nine years, the three different Ski Access segments each have comprised about a one-third market share of all the homes sold in Mountain Village. Buyer preference for Ski Access homes has fallen recently. In the last three years, Ski Access homes have only been 23% of the market, compared to 37% over the previous six years.

25 20 15 10 5 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Ski-­‐In/ Ski-­‐Out

Ski Access

No Ski Access

Average Price Per Square Foot -­‐ Ski Access Segments $900 $800 $700

This graph depicts the Price Per Square Foot buyers paid for homes in each of the three Ski Access segments. The Ski-In/ Ski-Out segment has maintained a premium over the No Access segment in each of the nine years analyzed. The Ski Access segment, however, does not paint a clear picture of sustained correlation to the other two segments.

$600 $500 $400 $300 $200 $100 $0

2005

2006

2007

2008

Ski-­‐In/Out

2009

2010

2011

2012

2013

Ski Access

16 TELLURIDE MARKET UPDATE

SKI RANCHES

T

he Ski Ranches is located just south of Mountain Village. The development contains 203 lots, most of which have been developed into single-family homes. This eclectic neighborhood is a favorite among locals and second homeowners alike. The neighborhood is significantly more affordable than Mountain Village and only a few minutes drive to the Telluride Ski Resort.

Sales Ac)vity -­‐ Ski Ranches Homes

$14,000,000

14

$12,000,000

12

$10,000,000

10

$8,000,000

8

$6,000,000

6

$4,000,000

4

$2,000,000

2

$0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

The Ski Ranches has been remarkably consistent in its dollar volume of sales of single-family homes. Since 2005, the average dollar volume sold has been approximately $7 million per year.

Like most segments, the bottom of the market occurred in 2009. In that year only one house sold but the following two years rebounded strongly. In 2011 twelve homes sold — at least double the number sold in any of the previous six years.

0

# of Sales

Sales Ac)vity -­‐ Ski Ranches Single Family Home Lots $3,000,000

5

$2,500,000

Since 2008, the single-family lot market has proven to be relatively illiquid in the Ski Ranches with only five lots selling in five years. In 2013, however, three lots sold, marking the best year since 2008. Prior to the downturn, 50% of lots sold for at least $500,000. No lots have sold for more than $500,000 since the downturn.

4

$2,000,000

3

$1,500,000 2

$1,000,000

1

$500,000 $0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

# of Sales

Average Sales Price Per Square Foot -­‐ Ski Ranches $600 $500 $400

Price per square foot of homes in the Ski Ranches fell off dramatically in 2009. Although the metric rebounded in 2010, it mostly has been easing back ever since.

$300 $200 $100 $0

2005

2006

2007

2008

2009

2010

2011

2012

2013

17 TELLURIDE MARKET UPDATE

0

ALDASORO RANCH

A

ldasoro Ranch is a 1,550-acre parcel developed into 166 single-family lots in the late 1980s. Almost every home in the subdivision is less than fifteen minutes to Downtown Telluride and the Telluride Ski Resort. Lots range from three to ten acres. The subdivision is characterized by having some of the best views in the entire region.

$25,000,000

Sales Ac)vity -­‐ Aldasoro Homes

6 5

$20,000,000

The Aldasoro Ranch single-family home segment is one of the most illiquid subdivisions in the region, with only a handful of homes selling each year. In 2008, there were no sales of homes in the subdivision. In four of the last five years, two homes sold in Aldasoro Ranch.

4

$15,000,000

3 $10,000,000

2

$5,000,000

$0

1

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

0

# of Sales

Sales Ac)vity -­‐ Aldasoro Single Family Home Lots

Aldasoro Ranch is one of the few subdivisions in the Telluride region where more lots have sold over the last nine years than homes. Nevertheless, no lots sold in the subdivision in 2013.

$7,000,000

7

$6,000,000

6

$5,000,000

5

$4,000,000

4

$3,000,000

3

$2,000,000

2

$1,000,000

1

$0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

$800

# of Sales

Average Sales Price Per Square Foot -­‐ Aldasoro

$700 $600

Six of the eight homes sold in Aldasoro Ranch from 2005 through 2015 sold between $400 and $500 per square foot, creating a relatively consistent measure for three of the last four years.

$500 $400 $300 $200

2005 2006 2007 2008 2009 2010 2011 2012 2013

18 TELLURIDE MARKET UPDATE

0

IDARADO LEGACY

I

darado Legacy is one of the newest subdivisions in the immediate Telluride region. The Idarado Mining Company set aside 125 acres between the Town of Telluride and the box canyon along the San Miguel River for the development of 37 single-family-home lots. The smallest lot is .58 acres and the largest lot is just over 15 acres. The lots are distributed into three neighborhoods: Liberty Bell, Pandora and Bridal Veil.

Liberty Bell is comprised of nine lots located on the north side of Canyon Road and is the closest to the Town of Telluride. Pandora is made up of 24 lots running along the San Miguel River. Bridal Veil has only four lots on the north canyon wall.

Sales Ac)vity -­‐ Idarado Legacy Single Family Home Lots

$14,000,000

9 8

$12,000,000

7

$10,000,000

6

$8,000,000

5

$6,000,000

4 3

$4,000,000

2

$2,000,000 $0

1 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

$5,000,000

Idarado Legacy successfully sold all but one of the lots during the developer sales. The least expensive lot sold for $770,000 while the most expensive lot sold for $2.6 million. Initially resales were profitable, but the impact of the downtown has been significant. Of the seven lots sold since the bottom in 2009, only one lot sold for more than the original developer sale.

0

# of Sales

Sales Ac)vity -­‐ Idarado Legacy Homes

2

$4,000,000 $3,000,000 1 $2,000,000 $1,000,000 $0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

Eight single-family homes have been built in Idarado Legacy since its inception. Only two homes have been sold. The first home sold in 2011 for $3.2 million not fully completed. The owner had lost the property to the lender. The second home to sell was in 2013 for $4.2 million.

0

# of Sales

19 TELLURIDE MARKET UPDATE

REGIONAL MESAS

T

he Telluride regional mesas provide opportunities to own rustic properties that range from modestlysized parcels to ranches of several thousand acres — all within an hour-drive of Telluride. Each mesa has a distinct character of terrain, vistas and even weather. Being mostly rural and remote, the mesas tend to be very illiquid properties. Despite their illiquidity, the allure of ranch property ownership always will appeal to a portion of Telluride regional buyers.

A detailed analysis of the individual regional mesas is beyond the scope of this report but meaningful insights into the mesas markets can be gained by looking at transaction activity of the mesas as a whole.

The analysis below considers sales activity of Sunshine, Wilson, Specie, Hastings and Iron Springs mesas taken together. Price Per Square Foot for transaction activity on the mesas is not analyzed because without significant adjustments to every transaction, the metric loses meaning.

Sales Ac)vity -­‐ Mesa Homes $35,000,000

30

$30,000,000

25

$25,000,000

20

$20,000,000 15 $15,000,000 10

$10,000,000

5

$5,000,000 $0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

0

Illiquid market segments often are hit the hardest during downturns. As an indication of the illiquidity of mesa properties, consider that when the total dollar volume peaked in 2007, there were only 14 sales of properties with homes across all five mesas. The total number of properties sold in this segment fell from 24 in 2005 to only three sales in 2010. Although this segment has been slow to recover, there has been steady improvement for three consecutive years. Last year was the strongest of the past six years with the number of transactions equaling that of 2007.

# of Sales

Sales Ac)vity -­‐ Mesa Vacant Parcels $25,000,000

40 35

$20,000,000

30 25

$15,000,000

20 $10,000,000

15 10

$5,000,000

5 $0

2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Dollar Volume

Vacant parcel sales on the mesas also were impacted significantly by the downturn. Unlike the mesa property homes segment, the vacant parcel segment has struggled to recover with only six sales in three of the last four years. By comparison, there were 35 sales in 2005. In 2012 indications grew positive when ten properties sold for the first time since 2007. Last year, however, the number of transactions slipped back to six sales.

0

# of Sales

20 TELLURIDE MARKET UPDATE

2014 FIRST QUARTER VS. HISTORICAL FIRST QUARTERS

TELLURIDE HOMES $ Volume

CONDOS Units

$ Volume

LAND Units

$ Volume

Units

First Quarter 2005

$10,420,500

7

$22,437,033

26

$4,250,000

4

First Quarter 2006

$11,410,000

4

$17,030,989

20

$1,850,000

1

First Quarter 2007

$11,555,000

5

$13,389,238

18

$3,550,000

1

First Quarter 2008

$3,350,000

2

$9,515,560

13

$3,070,000

2

First Quarter 2009

$1,370,000

1

$3,416,999

3

$405,000

1

First Quarter 2010

$14,060,000

5

$14,102,500

14

$1,135,000

1

First Quarter 2011

$3,040,000

2

$19,249,292

10

$508,000

1

First Quarter 2012

$10,455,330

5

$6,784,200

9

$3,450,000

3

First Quarter 2013

$4,381,500

5

$8,101,250

9

$6,112,500

4

First Quarter 2014

$12,455,000

5

$20,277,100

22

$2,940,000

3

MOUNTAIN VILLAGE HOMES $ Volume

CONDOS Units

$ Volume

LAND Units

$ Volume

Units

First Quarter 2005

$15,064,000

5

$16,210,557

20

$13,347,000

16

First Quarter 2006

$37,987,500

14

$48,116,887

34

$11,972,660

17

First Quarter 2007

$43,614,000

11

$39,341,595

27

$8,899,000

5

First Quarter 2008

$3,300,000

1

$35,436,106

18

$700,000

1

First Quarter 2009

$4,570,000

2

$8,703,775

5

$0

0

First Quarter 2010

$25,135,000

6

$11,535,000

8

$1,600,000

1

First Quarter 2011

$2,600,000

1

$10,638,900

11

$2,965,800

7

First Quarter 2012

$28,888,000

6

$7,312,750

8

$0

0

First Quarter 2013

$16,700,000

3

$14,005,227

11

$507,000

2

First Quarter 2014

$10,080,000

4

$10,842,000

12

$11,445,000

2

21 TELLURIDE MARKET UPDATE

2014 FIRST QUARTER VS. HISTORICAL FIRST QUARTERS

ALDASORO HOMES $ Volume

LAND Units

$ Volume

Units

First Quarter 2005

$13,374,000

0

0

0

First Quarter 2006

$2,500,000

1

$775,000

1

First Quarter 2007

0

0

$785,000

1

First Quarter 2008

0

0

$1,750,000

2

First Quarter 2009

0

0

$775,000

1

First Quarter 2010

0

0

$575,000

1

First Quarter 2011

$10,250,000

2

$0

0

First Quarter 2012

0

0

$1,910,000

3

First Quarter 2013

0

0

$0

0

First Quarter 2014

$3,045,704

1

$375,000

1

SKI RANCHES HOMES $ Volume

CONDOS Units

$ Volume

Units

First Quarter 2005

0

0

$380,000

1

First Quarter 2006

$1,025,000

1

$1,310,000

2

First Quarter 2007

$2,135,000

1

0

0

First Quarter 2008

$2,900,000

2

0

0

First Quarter 2009

$575,000

1

0

0

First Quarter 2010

$2,495,000

2

0

0

First Quarter 2011

$2,965,000

3

0

0

First Quarter 2012

0

0

0

0

First Quarter 2013

$775,000

1

$400,000

1

First Quarter 2014

$1,623,700

2

$352,000

1

22 TELLURIDE MARKET UPDATE

2014 FIRST QUARTER VS. HISTORICAL FIRST QUARTERS

IDARADO LEGACY HOMES $ Volume

LAND Units

$ Volume

Units

First Quarter 2005

0

0

0

0

First Quarter 2006

0

0

0

0

First Quarter 2007

0

0

$1,800,000

1

First Quarter 2008

0

0

0

0

First Quarter 2009

0

0

0

0

First Quarter 2010

0

0

0

0

First Quarter 2011

0

0

0

0

First Quarter 2012

0

0

$1,415,000

1

First Quarter 2013

0

0

0

0

First Quarter 2014

0

0

0

0

MESAS HOMES $ Volume

CONDOS Units

$ Volume

Units

First Quarter 2005

$5,116,450

6

$2,930,789

8

First Quarter 2006

$255,000

1

$2,714,000

3

First Quarter 2007

$10,275,078

6

$884,900

4

First Quarter 2008

0

0

$2,845,000

2

First Quarter 2009

0

0

$1,840,000

4

First Quarter 2010

0

0

$4,250,000

2

First Quarter 2011

$2,575,825

5

$1,202,000

2

First Quarter 2012

$929,000

2

$0

0

First Quarter 2013

$2,050,000

1

$390,000

2

First Quarter 2014

$1,160,000

2

0

0

23 TELLURIDE MARKET UPDATE

ALL THE NUMBERS - HOMES Telluride Homes

2013

2012

2011

2010

2009

2008

2007

2006

2005

Number of Sales

25

35

22

26

10

16

33

21

17

$49,111,410

$65,590,411

$42,736,256

$55,292,900

$14,985,000

39,925,000

$69,664,325

$59,348,000

$34,880,500

752

764

650

717

737

$947

$988

$974

$847

Avg Sold Price

1,964,456

1,874,012

1,942,557

$2,126,650

$1,498,500

$2,495,312

$2,111,040

$2,826,095

$2,051,794

Avg Asking Price

2,152,460

$2,162,996

2,281,116

$2,574,958

1,704,500

$2,719,688

$2,204,970

$2,997,952

$2,178,824

8.7%

13.4%

14.8%

17.4%

12.1%

8.3%

4.3%

5.7%

5.8%

724

405

518

315

346

297

319

265

197

2013

2012

2011

2010

2009

2008

2007

2006

2005

Sold Volume Avg Price per SQ FT

Ask/Sold Discount Avg Days on Market Mountain Village Homes Number of Sales Sold Volume Avg Price per SQ FT

8

22

9

19

17

10

40

28

34

$26,906,586

$76,321,000

$23,597,500

$84,858,706

$47,165,100

$41,012,500

$149,637,430

$92,456,886

$109,355,000

$545

$497

$440

$660

$585

$685

$673

$664

$601

Avg Sold Price

$3,363,323

$3,469,136

$2,621,944

$4,466,248

$2,774,418

$4,101,250

$3,740,936

$3,302,032

$3,216,324

Avg Asking Price

$3,697,250

$3,924,814

$3,093,222

$5,151,316

$3,332,353

$4,858,900

$4,043,875

$3,568,357

$3,557,765

9.0%

11.6%

15.2%

13.3%

16.7%

15.6%

7.5%

7.5%

9.6%

800

692

687

488

438

352

323

407

373

2013

2012

2011

2010

2009

2008

2007

2006

2005

1

0

1

0

0

0

0

0

0

$4,175,000

0

$3,225,000

0

0

0

0

0

0

Ask/Sold Discount Avg Days on Market Idarado Homes Number of Sales Sold Volume Avg Price per SQ FT

$856

0

$529

0

0

0

0

0

0

Avg Sold Price

$4,175,000

0

$3,225,000

0

0

0

0

0

0

Avg Asking Price

$4,575,000

0

$3,225,000

0

0

0

0

0

0

8.7%

0

0.0%

0

0

0

0

0

0

333

0

22

0

0

0

0

0

0

Aldasoro Homes

2013

2012

2011

2010

2009

2008

2007

2006

2005

Number of Sales

2

2

2

4

2

0

3

5

3

$6,100,000

$5,500,000

$10,250,000

$9,295,000

$5,973,000

0

$11,925,000

$21,835,000

$7,740,000

Ask/Sold Discount Avg Days on Market

Sold Volume Avg Price per SQ FT

$438

$466

$646

$467

$578

0

$719

$667

$515

Avg Sold Price

$3,050,000

$2,750,000

$5,125,000

$2,323,750

$2,986,500

0

$3,975,000

$4,367,000

$2,580,000

Avg Asking Price

$3,645,000

$3,195,000

$6,122,500

$2,691,000

$3,345,000

0

$4,380,000

$5,156,000

$2,791,667

16.3%

13.9%

16.3%

13.6%

10.7%

0

3.6%

3.6%

3.6%

Avg Days on Market

1318

261

424

566

259

0

519

233

483

Ski Ranches Homes

2013

2012

2011

2010

2009

2008

2007

2006

2005

7

8

12

6

1

5

5

5

5

$7,198,167

$5,666,692

$11,758,500

$8,305,900

$575,000

$7,197,500

$8,279,000

$6,970,000

$7,760,000

Ask/Sold Discount

Number of Sales Sold Volume Avg Price per SQ FT

$277

$270

$305

$359

$178

$461

$530

$453

$436

Avg Sold Price

$1,028,310

$708,336

$979,875

$1,384,317

$575,000

$1,439,500

$1,655,800

$1,394,000

$1,552,000

Avg Asking Price

$1,102,571

$781,612

$1,066,292

$1,522,483

$715,900

$1,562,000

$1,790,000

$1,485,200

$1,656,800

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

223

250

301

299

184

134

264

293

312

2013

2012

2011

2010

2009

2008

2007

2006

2005

14

11

6

3

4

7

14

12

24

$15,161,000

$5,481,800

$3,655,825

$2,259,000

$4,434,500

$8,261,090

$30,495,078

$23,472,440

$17,191,450

Ask/Sold Discount Avg Days on Market Mesas Homes Number of Sales Sold Volume Avg Price per SQ FT

$294

$220

$253

$315

$281

$380

$1,060

$382

$324

Avg Sold Price

$1,082,929

$498,345

$609,304

$753,000

$1,108,625

$1,180,156

$2,178,220

$1,956,037

$716,310

Avg Asking Price

$1,274,357

$546,300

$784,833

$808,300

$1,214,444

$1,439,857

$2,428,000

$2,464,738

$809,625

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

3.6%

327

389

384

219

581

627

224

367

387

Ask/Sold Discount Avg Days on Market

24 TELLURIDE MARKET UPDATE

ALL THE NUMBERS - SINGLE FAMILY HOME LOTS Telluride Lots Number of Sales Sold Volume Avg Sold Price per SQ FT Avg Sold Price

2013

2012

2011

2010

2009

2008

2007

2006

10

15

6

5

2

6

5

8

2005 6

$12,884,000

$14,328,500

$4,373,000

$3,836,000

$1,605,000

$7,836,000

$8,065,000

$13,185,000

$6,725,000

$10,067,860

$13,248,787

$8,530,357

$8,123,486

$10,880,435

$10,527,980

$15,070,617

$11,879,510

$9,946,428

$1,288,400

$955,233

$728,833

$767,200

$802,500

$1,306,000

$1,613,000

$1,648,125

$1,120,833

$1,433,300

$1,099,200

$819,662

$767,200

$850,000

$1,489,167

$1,740,000

$1,773,125

$1,350,833

10.1%

13.1%

11.1%

0.0%

5.6%

12.3%

7.3%

7.0%

17.0%

137

475

120

20

79

244

81

297

168

2013

2012

2011

2010

2009

2008

2007

2006

2005

12

16

17

6

8

11

27

63

51

Sold Volume

$8,887,250

$12,424,670

$6,975,300

$4,807,000

$5,754,000

$13,710,000

$35,130,625

$59,295,866

$49,860,612

Avg Price per SQ FT

$1,290,073

$1,291,530

$1,616,320

$2,211,761

$2,899,642

$1,871,373

$2,179,055

$2,376,536

$2,086,141

Avg Sold Price

$740,604

$776,542

$410,312

$801,167

$719,250

$1,246,364

$1,301,134

$941,204

$977,659

Avg Asking Price

$853,346

$889,219

$499,518

$989,833

$872,156

$1,361,409

$1,424,389

$995,444

$1,014,017

13.2%

12.7%

17.9%

19.1%

17.5%

8.5%

8.7%

5.4%

3.6%

652

509

594

747

204

300

325

347

421

2013

2012

2011

2010

2009

2008

2007

2006

2005

3

1

2

1

0

2

8

5

2

$3,470,000

$1,415,000

$1,799,000

$595,000

0

$4,286,000

$12,050,000

$9,245,000

$1,969,781

Avg Asking Price Ask/Sold Discount Avg Days on Market Mountain Village Lots Number of Sales

Ask/Sold Discount Avg Days on Market Idarado Lots Number of Sales Sold Volume Avg Price per SQ FT

$1,228,924

$769,022

$1,208,606

$483,740

0

$1,546,172

$1,984,915

$1,408,460

$983,704

Avg Sold Price

$1,156,667

$1,415,000

$899,500

$595,000

0

$2,143,000

$1,506,250

$1,849,000

$984,890

Avg Asking Price

$1,198,333

$1,625,000

$992,000

$595,000

0

$2,200,000

$1,506,250

$1,874,000

$984,500

3.5%

12.9%

9.3%

0.0%

0.0%

2.6%

0.0%

1.3%

0.0%

422

1086

304

0

0

736

342

204

50 2005

Ask/Sold Discount Avg Days on Market

2013

2012

2011

2010

2009

2008

2007

2006

Number of Sales

Aldasoro Lots

0

3

3

2

1

4

6

1

6

Sold Volume

0

$1,910,000

$2,545,000

$1,115,000

$775,000

$3,594,000

$5,997,500

$775,000

$5,236,000

Avg Price per SQ FT

0

$231,680

$206,234

$231,931

$279,783

$362,218

$297,033

$229,970

$328,232

Avg Sold Price

0

$636,667

$848,333

$557,500

$775,000

$898,500

$999,583

$775,000

$872,667

Avg Asking Price

0

$685,000

$933,000

$635,000

$875,000

$978,500

$1,080,500

$799,000

$934,833

Ask/Sold Discount

0

0.070559124

9.1%

12.2%

11.4%

8.2%

7.5%

3.0%

6.6%

Avg Days on Market

0

505

339

Â

625

204

333

323

730

Ski Ranches Lots

2013

2012

2011

2010

2009

2008

2007

2006

2005

Number of Sales

3

1

0

1

0

3

3

4

2

$829,000

$137,500

0

$210,000

0

$1,863,000

$1,725,000

$2,575,000

$990,000

Sold Volume Avg Price per SQ FT

$150,439

$129,717

0

$164,062

0

$336,864

$432,545

$312,291

$268,278

Avg Sold Price

$276,333

$137,500

0

$210,000

0

$621,000

$575,000

$643,750

$495,000

Avg Asking Price

$304,667

$199,000

0

$249,000

0

$686,667

$616,667

$682,500

$502,500

9.3%

30.9%

0.0%

15.7%

0.0%

9.6%

6.8%

5.7%

1.5%

417

892

0

706

0

135

333

181

320

2013

2012

2011

2010

2009

2008

2007

2006

2005

6

10

6

6

10

8

18

18

35

$1,865,000

$14,463,000

$2,592,000

$4,919,000

$3,892,000

$6,410,000

$22,757,600

$18,729,000

$14,707,789

$15,032

$14,209

$11,694

$18,305

$11,466

$22,492

$23,054

$20,366

$17,304

Ask/Sold Discount Avg Days on Market Mesas Lots Number of Sales Sold Volume Avg Price per SQ FT Avg Sold Price

$310,833

$1,446,300

$432,000

$819,833

$389,200

$801,250

$1,264,311

$1,040,500

$420,223

Avg Asking Price Avg Ask/Sold Discount Avg Days on Market

$455,083

$1,892,800

$456,333

$828,317

$496,200

$1,135,625

$1,480,911

$1,156,500

$439,649

31.7%

23.6%

5.3%

1.0%

21.6%

29.4%

14.6%

10.0%

4.4%

747

558

344

236

464

283

188

273

237

25 TELLURIDE MARKET UPDATE

ALL THE NUMBERS - CONDOS AND LUXURY MARKETS Telluride Condos Number of Listings/Sales Sold Volume Avg Price per SQ FT

2013

2012

2011

2010

2009

2008

2007

2006

49

61

39

41

24

34

63

78

2005 80

$35,889,199

$45,090,475

$43,238,152

$34,556,147

$22,094,999

$23,674,785

$57,816,850

$67,227,299

$62,479,881

$564

$521

$620

$607

$699

$678

$763

$711

$679

Avg Sold Price

$732,433

$739,188

$1,108,671

$842,833

$920,625

$696,317

$917,728

$861,888

$780,999

Avg Asking Price

$801,780

$799,892

$1,226,023

$934,433

$1,060,400

$774,970

$1,004,940

$890,082

$820,280

8.6%

7.6%

9.6%

Â

13.2%

10.1%

8.7%

3.2%

4.8%

313

327

516

236

395

309

241

256

157

Mountain Village Condos

2013

2012

2011

2010

2009

2008

2007

2006

2005

Number of Listings/Sales

54

48

35

38

26

43

75

85

99

$58,250,672

$49,624,942

$34,145,160

$45,432,201

$34,262,693

$77,698,229

$111,058,839

$106,065,135

$94,433,938

$485

$422

$496

$483

$579

$795

$730

$658

$564

Ask/Sold Discount Avg Days on Market

Sold Volume Avg Price per SQ FT Avg Sold Price

$1,078,716

$1,033,853

$975,576

$1,195,584

$1,317,796

$1,806,936

$1,480,785

$1,247,825

$953,878

Avg Asking Price

$1,231,125

$1,178,295

$1,141,420

$1,369,646

$1,617,450

$1,932,199

$1,615,666

$1,341,611

$999,046

12.4%

12.3%

14.5%

12.7%

18.5%

6.5%

8.3%

7.0%

4.5%

544

563

388

306

263

546

346

371

419

2013

2012

2011

2010

2009

2008

2007

2006

2005

Ask/Sold Discount Avg Days on Market Mountain Village Luxury Condos Number of Listings/Sales Sold Volume Avg Price per SQ FT

3

8

3

6

6

11

16

18

6

$6,021,875

$21,590,418

$7,253,165

$13,825,000

$15,123,775

$38,429,000

$48,545,836

$50,312,000

$14,428,000

$475

$597

$679

$565

$811

$1,134

$949

$914

$792

Avg Sold Price

$2,007,292

$2,698,802

$2,417,722

$2,304,167

$2,520,629

$3,493,545

$3,034,115

$2,795,111

$2,404,667

Avg Asking Price

$2,246,667

$3,251,250

$3,036,667

$2,630,667

$3,106,502

$3,677,186

$3,212,938

$3,076,296

$2,546,667

10.7%

17.0%

20.4%

12.4%

18.9%

5.0%

5.6%

9.1%

5.6%

334

1182

704

551

237

400

325

366

912

2013

2012

2011

2010

2009

2008

2007

2006

2005

4

6

7

3

4

2

4

4

5

$9,693,450

$17,971,725

$21,644,158

$9,356,450

$8,890,000

$5,150,000

$9,944,000

$9,990,000

$14,125,000

$946

$1,033

$1,101

$1,086

$808

$1,066

$963

$1,095

$962

Avg Sold Price

$2,423,362

$2,995,288

$3,092,023

$3,118,817

$2,222,500

$2,575,000

$2,486,000

$2,497,500

$2,825,000

Avg Asking Price

$2,722,500

$3,247,467

$3,481,914

$3,643,500

$2,521,250

$3,350,000

$3,126,250

$2,505,000

$3,078,000

11.0%

7.8%

11.2%

14.4%

11.8%

23.1%

20.5%

0.3%

8.2%

167

1046

845

638

403

331

243

346

213

2013

2012

2011

2010

2009

2008

2007

2006

2005

Ask/Sold Discount Avg Days on Market Telluride Luxury Condos Number of Listings/Sales Sold Volume Avg Price per SQ FT

Ask/Sold Discount Avg Days on Market Mountain Village Luxury Homes Number of Listings/Sales Sold Volume Avg Price per SQ FT

2

4

1

8

1

2

9

7

8

$13,950,000

$40,850,000

$5,200,000

$55,480,000

$6,750,000

$16,775,000

$68,849,640

$42,195,000

$49,209,000

$572

$765

$636

$719

$1,168

$709

$869

$764

$773

Avg Sold Price

$6,975,000

$10,212,500

$5,200,000

$6,935,000

$6,750,000

$8,387,500

$7,649,960

$6,027,857

$6,151,125

Avg Asking Price

$7,424,000

$11,550,000

$6,995,000

$7,981,875

$7,495,000

$10,297,500

$8,293,333

$6,440,000

$6,861,875

6.0%

11.6%

25.7%

13.1%

9.9%

18.5%

7.8%

6.4%

10.4%

642

538

1805

462

818

630

328

402

588

2013

2012

2011

2010

2009

2008

2007

2006

2005

5

7

3

4

1

4

6

8

3

$22,850,000

$28,225,000

$12,510,000

$23,820,000

$3,400,000

$15,565,000

$23,641,325

$37,695,000

$11,700,000

Avg Ask/Sold Discount Avg Days on Market Telluride Luxury Homes Number of Listings/Sales Sold Volume Avg Price per SQ FT

$1,026

$1,155.00

$877

$930

$970

$1,200

$1,304

$1,019

$1,162

Avg Sold Price

$4,570,000

$4,032,143

$4,170,000

$5,955,000

$3,400,000

$3,871,250

$3,940,221

$4,711,875

$3,900,000

Avg Asking Price

$5,118,800

$4,656,286

$5,366,667

$7,912,500

$4,200,000

$4,211,250

$3,947,500

$5,015,125

$4,206,667

10.7%

13.4%

22.3%

24.7%

19.0%

7.6%

0.2%

6.0%

7.3%

533

470

764

414

141

292

196

420

157

Ask/Sold Discount Avg Days on Market

26 TELLURIDE MARKET UPDATE

ABOUT THE AUTHOR STEWART SEELIGSON “Sophisticated Buyers and Sellers demand the highest-quality guidance from their agents in every transaction. Stewart’s extensive business education and diverse real estate experience set him apart from other real estate brokers in the Telluride region.”

EDUCATION After completing his high school education at Jesuit College Preparatory School of Dallas, Stewart attended the University of Texas at Austin receiving a BBA in Accounting in 1986.

He practiced accounting for five years and became a licensed CPA. Stewart returned to the University of Texas and earned an MBA in 1994, graduating with honors and a specialization in Finance.

REAL ESTATE EXPERIENCE Stewart was recruited by Enron Corporation while he was in business school. He worked with the company for nine years, and became Vice President in less than five years. He started as an associate, performing detailed market analysis and complex computer modeling. Stewart soon moved into a lead developer position of large industrial real estate projects, where he negotiated highly structured transactions with large international companies. One of the transactions negotiated by Stewart is the subject of a Harvard Business School case study because of its innovation in the European marketplace.

Stewart has been engaged in the Telluride real estate market since 2002. He has been a real estate broker with Telluride Sotheby’s International Realty for the last seven years.

Stewart has served on the Board of Directors of the Telluride Association of Realtors (TAR) since 2007. From 2012 to 2013, he served as President of the Association. Stewart was recognized as the Realtor of the Year in 2013.

COMMUNITY Since making Telluride his home, Stewart has been an active participant in the local community. He is an annual volunteer at the Telluride Film Festival and a board member of the Telluride Young Life. He is also a strong financial supporter of many Telluride charities including the Telluride Rotary, the Aha School, the San Miguel Resource Center, Telluride One-to-One, and the Volunteer Fire Department.

DESTINATIONS Throughout his life, Stewart has sought out premier destinations to live, work and explore. As an adult, Stewart has lived in Washington DC, Texas, London, Madrid and now Telluride. He has had the great fortune to travel to over fifty countries. “I have seen the most amazing and beautiful places on our planet but I have chosen the most beautiful, Telluride, to call my permanent home.”

TELLURIDE Stewart’s love for Telluride goes back to his childhood. Each year his family would leave the heat of the Texas summers for the freshness and beauty of the San Juan Mountains. He has wonderful memories of hiking, camping and learning to fly fish in pristine mountain rivers. Stewart remembers Telluride in the early 1970’s. He and his family would drive the jeep over Black Bear pass and enjoy ice cream floats at the Old Drug Store on Main Street, the very building where he makes his office today.

27 TELLURIDE MARKET UPDATE

H Buying or selling property often has an emotional component, but it is also an important investment decision. My extensive business education and real estate experience distinguishes my work as a broker in Telluride. I will help you make sound decisions for your real estate investments.

elping you make sound real estate decisions.

Tristant Drive

Stonegate Drive

West Pacific Avenue

Lost Creek Lane

Ridgeline Drive

Polecat Lane

Exceptional log and stone townhome with four bedrooms.

Luxuriously furnished. Wonderful views. Excellent ski access.

Offered at $1.85 million.

Beautiful five bedroom home with spectacular views throughout the residence. Recently built. Direct ski-in and ski-out.

Offered at $2.950 million.

Stewart Seeligson BBA (Accounting) University of Texas 1986 MBA (Finance) University of Texas 1994 Licensed Certified Public Accountant 1991

Delightful two bedroom condo with large loft. Spectacular views. Vibrant location. Two blocks to the ski lift.

Offered at $675,000.

Luxurious stand-alone three bedroom residence. Privately located in the Mountain Village core. Direct ski-in and ski-out.

Offered at $2.977 million.

Five years accounting experience Twelve years real estate and business development experience Twelve years Telluride real estate experience 2012-2013 President, Telluride Association of Realtors 2013 Realtor of the Year

137 W. Colorado Avenue Telluride, Colorado 81435

970.708.4999

Stewart.Seeligson@SothebysRealty.com

TellurideRealEstateForSale.com

Spectacular five bedroom log and stone townhome. Rustic yet well finished with breathtaking views. Excellent ski access.

Offered at $1.695 million.

Sunny and spacious three bedroom home with mountain views.

Multiple decks. Ideal for entertaining. Directly trailside.

Offered at $3.68 million.