Market Report | 2016 Year-End

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Telluride

MARKET REPORT

Year-End | 2016


The Market Report Telluride Real Estate Corp. is pleased to present our comprehensive market report for the fourth quarter of 2016. In this report, you will find an overall snapshot of the market as well as detailed information on the different market segments making up the Telluride region.

Telluride Real Estate Corp. TRUSTED. EXPERIENCED. PROFESSIONAL. SINCE 1981. Telluride Real Estate Corp. / Christie’s International Real Estate is proud to be one of the most established real estate brokerages in the region, with a team that includes over 35 licensed brokers, assistants and staff members. Our organization is comprised of only experienced, successful and dedicated full-time real estate professionals. Our partners are deeply embedded in the community, having been directly involved in the planned development of the Telluride area as a world-class ski resort. Our owners and the majority of our Telluride real estate agents are longtime Telluride locals who are passionate about their careers and about living in this spectacular mountain town. In a sense, we are ambassadors for this community, bringing Telluride to the rest of the world. In addition, the partners, brokers and assistants that make up the TREC team are some of the region’s most dynamic individuals – a group of people who share energy, enthusiasm, a sense of purpose, and an ability to get things going and get things done. Real estate is about personal relationships, and we strive to provide an unrivaled experience for our buyers and sellers from beginning to end and beyond. Indeed, most TREC clients are clients for life.

... All data in this report is collected from Telluride Consulting and the Telluride Multiple Listing Service. All information is deemed accurate and reliable but is not guaranteed.


MARKET HIGHLIGHTS

2% 1% 14%

{ { {

DECREASE IN DOLLAR VOLUME OF TRANSACTIONS

INCREASE IN NUMBER OF TRANSACTIONS

TREC’S INCREASE IN DOLLAR VOLUME OF TRANSACTIONS

} } }

S I G NI F I C A N T S A L E

110 Stone Bridge Lane | $6,950,000 Listed and Sold by TREC/Christie’s


MARKET HIGHLIGHTS The Telluride real estate market’s total sales for 2016 were nearly on par in both dollars and number of sales, compared to 2015. $452.8M in contracts closed last year, only 2% below 2015 (which had the extraordinary Mountain Village home sale of $14M by TREC). The number of sales were up one point compared to 2015. What started as an uncertain year due to an unexpected plunge of the DOW and election concerns, first quarter sales finished down 39%. The Telluride market rebounded exceptionally well and 2016 had a satisfying, stable finish. TREC is pleased that its sales performed exceedingly better than the market with the company’s dollar volume up 14% over 2015. Notably, Mountain Village saw an improvement of high-end luxury home sales. In 2015, there was one home sale over $5M, the abovementioned extraordinary sale of $14M. In 2016, there were six home sales over $5M in Mountain Village. This is an indication that mountain resort markets are an increasingly attractive purchase. The Town of Telluride’s persistent low supply continues to be a contributing factor to a mild slowdown in that segment. While the number of sales are down nearly 20%, dollar volume is only down 11% signaling the Town of Telluride remains desirable. With construction taking place on nearly every block, this should soon correct itself. Given rising energy prices in key Telluride buyer market segments and a strengthened DOW, the outlook for 2017 looks positive. According to the MLS, $96.8M in sales are currently under contract (with a third of those contracted through TREC!). The combination of economic conditions and properties under contract indicate the market off to a good start for 2017. Forbes recently gave Telluride a rave review, saying there is “a compelling argument that it is the single best ski vacation choice in the country.” Telluride has also proven to be a strong value play when compared to other mountain resort markets, with entry level prices well below that of other luxury resorts. An unbeatable combination.

... 2016 (vs. 2015)

Q4 2016

562 (up 1%)

# OF TRANSACTIONS

161

$452.8 (down 2%)

$ OF TRANSACTIONS

$145.3M

$7,500,000

HIGHEST PRICE SOLD

$6,950,000

$805,694

AVERAGE PRICE

$902,484


MARKET HIGHLIGHTS YEAR-END 2016

132

TRANSACTIONS $1-5 MILLION

311

TRANSACTIONS UNDER $1 MILLION*

8

TRANSACTIONS $5 MILLION+

*excludes fractionals and deed-restricted properties

SALES DISTRIBUTION BY LOCATION TELLURIDE

26%

39%

35%

SALES DISTRIBUTION BY SEGMENT

MOUNTAIN VILLAGE

REMAINDER OF COUNT Y

SINGLE FAMILY

24%

34%

22%

20%

CONDOMINIUM

VACANT LAND

OTHER


Market Details SOLD | 586 West Pacific Avenue, Unit C Listed at $2,195,000 Listed by TREC/Christie’s

Town of Telluride

# OF TRANSACTIONS 137 (down 19%)

YEAR-END 2016

$ OF TRANSACTION5 $157.2M (down 11%)

Town of Telluride properties continue to be an attractive purchase. Single-family homes saw a 33% increase in the number of sales and 42% increase in dollar volume compared to ‘15. Inventory is becoming increasingly limited due to its high demand. Condos/townhomes saw a 18% decrease in the number of sales compared to ’15 but only 7% decrease in dollar volume, signifying a desire for town properties. Vacant land sales are slightly down as inventory is being absorbed, with dollar volume down 34%, due in part to the extraordinary sale of the vacant lot at 222 W San Juan Ave at $9M in July ‘15 by TREC.

MAJOR MARKET SEGMENTS Single-Family

Condo/Townhome

Vacant Land

# OF TRANSACTIONS

28

78

14

$ OF TRANSACTIONS

$64.3M

$71.0M

$13.6M

AVERAGE SALE PRICE

$2,295,910

$910,182

$970,657

MAX SALE PRICE

$6,200,000

$3,425,000

$2,375,000

4

13

1

# OF PENDING TRANSACTIONS


Market Details

Mountain Village

# OF TRANSACTIONS 207 (up 13%)

YEAR-END 2016

$ OF TRANSACTION5 $189.3M (up 7%)

Mountain Village saw a notable increase in high-end luxury home sales. 2015 had one home sale over $5M, the extraordinary sale of $14M by TREC. In 2016, there were six home sales over $5M, with TREC representing four of the six sales. Condo/townhome sales were also strong, with a 25% increase in the number of sales and 27% increase in dollar volume compared to ’15. Condos/townhomes remain strong with their proximity to the ski resort and rental income potential. Mountain Village land sales have softened somewhat with dollar volume down 32%.

MAJOR MARKET SEGMENTS Single-Family

Condo/Townhome

Vacant Land

# OF TRANSACTIONS

19

96

12

$ OF TRANSACTIONS

$67.9M

$104.8M

$8.7M

AVERAGE SALE PRICE

$3,575,474

$1,091,824

$729,134

MAX SALE PRICE

$7,500,000

$3,825,000

$1,550,000

4

11

2

# OF PENDING TRANSACTIONS

SOLD | 710 Mountain Village Boulevard Listed at $6,995,000 Sold by TREC/Christie’s


Market Details

t e

SOLD||Sound 153 Wapiti Road SOLD of Music Ranch, Parcel AR Listedatat$6,400,000 $1,825,000 Listed Listed by TREC/Christie’s Listed by TREC/Christie’s

Remainder of County

# OF TRANSACTIONS 186 (up 16%)

YEAR-END 2016

$ OF TRANSACTION5 $94.7M (down 1%)

County single-family home sales are up 64% in number, with the Ski Ranches and Aldasoro neighborhoods being the most desirable for their proximity to Telluride and Mountain Village, along with open space and views. Condo/townhome sales are down 6% in the remainder of county as inventory is overall limited in this segment. Land sales are down slightly at 8%. This decrease and large increase in single-family homes sales suggests buyers are favoring turn-key properties over building.

MAJOR MARKET SEGMENTS Single-Family

Condo/Townhome

Vacant Land

# OF TRANSACTIONS

82

8

89

$ OF TRANSACTIONS

$50.7M

$2.1M

$40.6M

AVERAGE SALE PRICE

$618,075

$264,925

$456,498

$3,400,000

$725,000

$5,500,000

9

1

3

MAX SALE PRICE # OF PENDING TRANSACTIONS


telluridereal estatecorp.com christiesrealestate.com | searchtellurideproperties.com

Let’s talk numbers! Contact us below.

Town of Telluride | 970.728.3111 | 232 W. Colorado Avenue Mountain Village | 970.728.6655 | On Heritage Plaza Mountain Lodge | 970.369.6003 | 457 Mountain Village Boulevard

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