Telluride has enjoyed a steady, yet controlled growth that experiences spikes and plateaus. Other than the Great Recession, we have not seen significant market declines, as evidenced by an analysis of Telluride & Mountain Village median home prices over the past 30 years. Given constrained supply and rapidly increasing demand, our property values grew almost 100% in the most desirable segments of the Town of Telluride and Mountain Village during the Covid-Era. In 2023, we’ve transitioned to a more balanced market, yet average sale prices have continued to rise in comparison to 2022, with an increase of 13% in Telluride and 25% in Mountain Village.
As many other communities have seen, the cost of construction has (nearly) outpaced property values making it more difficult to do spec projects or build end-user residences. The latter has led to a decreased demand for single family land and remodel projects. In turn, values have spiked for newer, move-in ready product. Well-healed buyers are willing to pay premiums for what they want; high-end product that boasts high touch services, single level floor plans, AC, oxygen and floor-to-ceiling glass. The recent approvals of the Four Seasons and Six Senses Hotels in Mountain Village are the next level of lifestyle that Telluride has pursued for years. The Four Seasons will create a rising tide that will affect property values, visitor experiences, and job opportunities for full-time residents.
Inventories in the Town of Telluride are still 50% below pre-Covid numbers, while Mountain Village is down 60%. The YTD dollar volume for 2023 is 6% greater than the average for the last 5 years, with Mountain Village accounting for 51% of the market versus the Town of Telluride at 28%. This is the first time since 2006 that Mountain Village has surpassed the Town of Telluride for dollar volume, further signaling that our market is nearly balanced. Historically, the two towns see-saw as one market overheats, it lends perceived value to the other town. When the Great Recession hit, the Town of Telluride maintained and recovered its value faster as the demographic focused more on the convenience of Town over the privacy of Mountain Village. In recent times, buyers are moving towards the value proposition in Mountain Village as well as privacy and larger, newer properties.
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