There is a tendency to analyze short-term market data graphically with visual oversimplification - red downward trends (bad) / green upward trends (good).
Only when one examines longer-term data does a true picture come into a realistic focus. Three of the past five years were COVID-influenced, with average gross dollar sales of $1.2B. A 5-year look back demonstrates $960M / year on average. However, YTD the market has realized a 5% increase over that 5-year average. Therefore, the Telluride marketplace is simply “back to the new normal.”
Even more notable, the resiliency of the market continues with a serious decline in inventory - as much as 50% compared to prior to the pandemic. With this lack of inventory, San Miguel County average sale prices increased 5%, the Town of Telluride remained stable and the Mountain Village increased 48%. The latter segment of the market accounted for 60% of total sales volume YTD as compared to 40% during the same period last year. In addition, Mountain Village sale prices per square foot for single family homes inflated 37% and condominiums 16%.
Simply put, supply and demand economics support that the Telluride real estate marketplace, while from time-totime experiencing a decline in sales, has remained resilient as to value during economic downturns. The Telluride region is surrounded by federally-controlled property (USFS and BLM) limiting future growth to approximately 14,000 private acres. Virtually all of the private ground is subject to a master plan which allows for the development of fewer than 4,000 single-family equivalents on about one third (1/3) of the above-mentioned ground. This density is but a small fraction of allowable densities in other major resorts and it is this assurance of future controlled growth that positively drives the marketplace both with regard to volume and value.
