Telluride Year End 2023 Market Report

THE TELLURIDE REPORT YEAR END 2023

REAL ESTATE MARKET

IN PERSPECTIVE In 2023 we witnessed a year marked by both undeniable challenges and distinct opportunities. Through a year-end lens, the overarching narrative of Telluride is that area real estate values have largely returned to a rate of appreciation similar to pre-pandemic trends. The Town of Telluride, the Town of Mountain Village and the surrounding region concluded the year with $865.73 million in total sales volume across 445 transactions, translating into considerably higher dollars per incident of sale. While the year ended just 22% down in gross dollar sales, this still is the fourth highest grossing year in recent history. When compared to the prior five-year average, including the anomaly of the COVID buying frenzy for 2+ years, the total dollar volume has decreased only by 10% related to the prior 5-year average.

Sellers were emboldened by scarcity and buyers naturally reacted with some hesitancy to the lack of inventory, in the face of global economic softening. However, the lack of inventory with steadily increasing demand has had a positive influence on real estate values. Once again, if one compares total gross dollar sales of the prepandemic (2019), dollar volume increased over 30% with 20% fewer sales.

There were a total of 50 sales exceeding $5 million. Among these, 12 surpassed the $10 million mark, with TREC’s 8121 Preserve Drive ($17.5 million) standing out as one of the most significant sales of the year. The Telluride market contributed $231 million (27%) to the annual sales within in county, while the Mountain Village market generated $440 million (51%) and the remaining county areas amassed $194 million (22%). The average overall sales price experienced a 2% increase from 2022 to 2023, reaching $1,945,000.

2024 begins with a sense of cautious optimism. While home prices will likely remain elevated, economists are optimistic that the federal funds rate, which tends to indirectly influence mortgage rates, will go down. The 2020-2021 housing market was possibly too hot and cooled off in 2023. However, several signs point to 2024 getting closer to ‘normal’. For the housing recovery to continue to occur, increasing inventories will ease the upward pressure on home prices. Rate reductions happening at a metered pace will also incrementally improve buyer optimism, even though the Telluride market is largely infused by cash transactions. Increased interest from investors and the continued desirability of the area are also continuing to attract buyers.

There is added value with new projects currently elevating the Telluride market.

Luxury buyers in Telluride desirous of new high-end products are willing to pay the premium for them. The home-builder outlook is trending back up amid declining mortgage rates and inflating property values that more than offset building costs.

Millennials entering their prime home-buying years and amassed financial wealth will also help sustain the market in 2024.

Multiple ultra-luxury projects are scheduled to commence in the Telluride area including the Four Seasons Hotel and Private Residences, Highline Residences in the Mountain Village, the Town of Telluride Hotel and Residences and a continued progression of single-family spec projects. These new development projects will offer an elevated level of luxury, together with pricing, that will keep Telluride’s values and desirability in line with competing resorts.

The Telluride region itself remains a desirable draw, boasting one of the most exclusive and community-centric areas for savvy investors. The demand is primed for acceleration which will most likely unlock more inventory among sellers who have waited on upgrading for their next purchase. Being geographically restricted in the box canyon, the maximum capacity of the area will only increase fractionally while keeping the Telluride lifestyle and standard of living desirable.

If you have any questions about the data presented here or how it relates to your real estate goals, don’t hesitate to reach out. We pride ourselves on having a pulse on the lifestyle, the Telluride market and surrounding region.

SAN MIGUEL COUNTY OVERVIEW

TRANSACTIONS

24%

Compared to 2022

944 814

619

582

540 499

2017

2018

445

2019

2020

2021

2022

2023

DOLLAR VOLUME

24%

Compared to 2022 $1.42B $1.16B

$1.1B $865.7M

$621.1M $537.5M

2017

2018

$593.4M

2019

2020

2021

2022

2023

TOWN OF TELLURIDE $2,433,994

YTD Average Sale Price 2023

Number Available

Asking Price Range

Median Asking Price

2–3 Bedrooms

11

$3.5M–$6.85M

$3.99M

4 Bedrooms

5

$4.995M–$6.995M

$5.85M

5+ Bedrooms

7

$6.85M–$23M

$11.275M

Studio & 1 Bedrooms

4

$425K–$1.35M

$779K

2 Bedrooms

11

$1.15M–$4.4M

$1.795M

3 Bedrooms

6

$2.225M–$3.695M

$2.832M

4 Bedrooms

1

$3.795M

5+ Bedrooms

3

$7.837M–$13.5M

$11.475M

8

$699K–$3.5M

$1.7225M

WHAT’S FOR SALE Single Family Homes

Condominiums

Vacant Land All

WHAT’S SELLING IN THE TOWN OF TELLURIDE

$ $

1%

21%

YTD TOT Avg. Sale Price

19 Town of Telluride Single-Family Home Sales $98M

2%

TOT SFH Price Per Sq. Ft.

#

35%

42 Town of Telluride Condo Sales $105M

23%

YTD TOT Total Transactions

The price per square foot for Telluride SFH did fall slightly from 2022 ($1,911) to $1,872 in ‘23. The Telluride Condo price per sf also fell in ‘23 $1,768 (down from $1,781 in ‘22). However, the increase in average sales price for each category over the previous year was driven by limited inventory.

Under Contract

Number Sold

Sold Price Range

Median Sold Price

Median % Off Asking Price

2–3 Bedrooms

5

6

$3M–$4.4M

$3.7M

7%

4 Bedrooms

0

6

$3.5M–$10.25M

$6.975M

6%

5+ Bedrooms

2

7

$3.25M–$9.067M

$6.5M

8%

2023 SALES Single Family Homes

Condominiums Studio & 1 Bedrooms

0

13

$550K–$1.45M

$789K

2%

2 Bedrooms

0

19

$865K–$2.6M

$1.487M

4%

3 Bedrooms

2

9

$2.3M–$7.5M

$2.925M

6%

4 Bedrooms

0

3

$4.8M–$12.25M

$6.25M

4%

5+ Bedrooms

0

1

$10.95M

1

5

$610K–$3.125M

$1.6M

11%

Vacant Land All

MOUNTAIN VILLAGE $2,179,946

YTD Average Sale Price 2023

Number Available

Asking Price Range

Median Asking Price

2–3 Bedrooms

2

$4.25M–$5.2M

$4.725M

4 Bedrooms

4

$3.1M–$7.6M

$6.295M

5 Bedrooms

7

$8.995M–$15.95M

$10M

6+ Bedrooms

13

$5.6M–$23M

$12.721M

Studio & 1 Bedrooms

12

$359K–$2.15M

$567.5K

2 Bedrooms

5

$949M–$3.5M

$1.1M

3 Bedrooms

3

$1.925M–$5.415M

$2.65M

4 Bedrooms

4

$3.295M–$5.75M

$4.85M

5+ Bedrooms

1

$6.975M

25

$620K–$8M

WHAT’S FOR SALE Single Family Homes

Condominiums

Vacant Land All

$2.45M

$

WHAT’S SELLING IN THE MOUNTAIN VILLAGE 14%

12%

YTD MV Avg. Sale Price

$

16%

$

21%

23 Mountain Village Single-Family Home Sales $198.5M

MV Condo Price Per Sq. Ft.

25%

69 Town of Mountain Village Condo Sales $180M

MV SFH Price Per Sq. Ft.

The Town of Mountain Village jumped to all-time highs for price per sf in both the SFH and Condo categories, rising to $1,598 and $1,386 respectively in ‘23. The Mountain Village YTD Average Sales Price increased 14%, from $1,918,000 in ‘22 to $2,179,946 in ‘23.

Under Contract

Number Sold

Sold Price Range

Median Sold Price

Median % Off Asking Price

2–3 Bedrooms

0

3

$4.25M–$6.4M

$4.85M

3%

4 Bedrooms

0

6

$3.45M–$10.6M

$5.625M

1%

5 Bedrooms

5

7

$4.25M–$12.55M

$8.35M

2%

6+ Bedrooms

2

9

$5.1M–$18.9M

$10.5M

4%

Studio & 1 Bedrooms

0

20

$323.25K–$2.3496M

$520.2K

4%

2 Bedrooms

0

11

$795K–$4.45M

$1.25M

2%

3 Bedrooms

0

15

$1.35M–$5.25M

$2.95M

3%

4 Bedrooms

1

19

$2.575M–$7.295M

$4.145M

4%

5+ Bedrooms

0

2

$2.35M–$6.5M

$4.875M

5%

1

15

$825K–$8.65M

$1.5M

4%

2023 SALES Single Family Homes

Condominiums

Vacant Land All

REMAINDER OF COUNTY $1,311,852

YTD Average Sale Price 2023

Number Available

Asking Price Range

Median Asking Price

Turkey Creek Mesa

11

$755K–$10.995M

$4.525M

Deep Creek Mesa

21

$1.9M–$22.5M

$7.4M

Down Valley

4

$1.5M–$2.695M

$2.237M

Wilson Mesa

3

$599K–$12.495M

$1.25K

Specie Mesa

6

$775K–$7M

$4.125M

Hastings Mesa

5

$225K–$2.795M

$1.695M

Iron Springs/ Horsefly Mesa

10

$199K–$7.995M

$552K

Illium/Ames

2

Ophir

0

$1.395M–$1.995M

$1.695M

WHAT’S FOR SALE

WHAT’S SELLING IN THE COUNTY

$ $ #

14%

48%

YTD Avg. Sale Price

51 County Single-Family Home Sales $119M

37%

YTD Total Dollar Volume

33%

50 County Vacant Land Sales $44.5M

15%

YTD Total Transactions

The Town of Mountain Village jumped to all-time highs for price per sf in both the SFH and Condo categories, rising to $1,598 and $1,386 respectively in ‘23. The Mountain Village YTD Average Sales Price increased 14%, from $1,918,000 in ‘22 to $2,179,946 in ‘23.

2023 SALES

Under Contract

Number Sold

Sold Price Range

Median Sold Price

Median % Off Asking Price

Turkey Creek Mesa

0

13

$550K–$17.5M

$3.285M

4%

Deep Creek Mesa

4

10

$300K–$14.5M

$2.6M

3%

Down Valley

0

11

$280K–$4M

$1.045M

5%

Wilson Mesa

0

4

$575K–$7.6M

$1.462K

6%

Specie Mesa

0

11

$250K–$2.757M

$1.2M

1%

Hastings Mesa

0

9

$230K–$8.495M

$1.05M

1%

Iron Springs/ Horsefly Mesa

0

7

$159K–$540K

$325K

6%

Illium/Ames

0

Ophir

0

5

$310K–$1.25M

$345K

0%

TREC NOTEWORTHY SALES

A. 522 Benchmark Drive | $13,400,000 Sold by Team TD Smith

B. 224 Country Club Drive | $12,550,000 Sold by JW Group, Ben Jackson

C. 27 Trails Edge \ $12,500,000 A B C

Listed and Sold by JW Group, Ben Jackson & Andrew Williamson

TREC brokers were part of 7 of the top 10 significant sales of 2023 — Along with the $17.5M Preserve Drive, top sales included 522 Benchmark Drive, MV ($13.4M), 224 Country Club Drive, MV ($12.55M), 27 Trails Edge Drive, MV ($12.5M), The Senate: 123 South Spruce Street, TOT ($12.25M), 166 Country Club Drive, MV ($11.5M) and Element 52: 398 South Davis Street E7, TOT ($10.950)totaling $91.5M. Our commitment to maintaining one of the top positions in brokerage sales overall in the luxury market further strengthens our ties to serving our clients and community.

True Grit Ranch 9175 County Rd. 58P 177 County Rd. 61V Placerville, CO | $8,495,000 Listed and Sold by Dan Henschel and Jim Nerlin

D. 166 Country Club Drive | $11,500,000 Sold by JW Group, Ben Jackson

E. The Senate: 123 S Spruce Street | $12,250,000 Listed by Kiplynn Smith

F. Element 52: 398 S Davis Street E7 $10,950,000

Listed by Team TD Smith

E D

F

WE’VE BEEN AROUND EVERY BLOCK.

AND WE’VE GOT THE STATS TO PROVE IT.

7 OF THE TOP 10

TREC BROKERS WERE PART OF

SIGNIFICANT SALES OF 2023

$8.495 MILLION SIGNIFICANT SALE:

TRUE GRIT RANCH DAN HENSCHEL AND JIM NERLIN

$865.73 445

MILLION TOTAL SALES VOLUME

TRANSACTIONS

WHAT’S FOR SALE

125 Hang Glider Drive, MV | $21,500,000

Sanctum: 546 West Pacific Avenue, TOT | $11,495,000

111 Benchmark Drive, MV | $10,000,000

7039 Last Dollar Road, TOT | $9,995,000

Turkey Creek Ranch 8210 Highway 145, TOT | $9,995,000

Catmando 685 Wilson Way, TOT | $8,750,000

220 North Oak Street, TOT | $8,750,000

280 Sage Grouse North, Placerville | $7,995,000

DAN HENSCHEL Vice President

dan@danhenschel.com 970.708.2131 567 Mountain Village Blvd.

Suit 106A Telluride, CO 81435 www.danhenschel.com

VIEW ALL PROPERTIES FOR SALE IN THE TELLURIDE MARKET

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