Telluride has clearly felt the real estate frenzy ignited by the pandemic. Inventory has hit 30 year lows as evidenced by only 16 homes and condos available for purchase in Downtown Telluride. This does not mean that Town is dramatically changing or that the market does not still have opportunity. Like-minded people still choose Telluride for its sense of community and small-town living. An interesting spin-off from this influx of new people is an increase in intellectual diversity that has led to more collaboration on many fronts including arts, science, economics and more. This next era may lead to a more diversified regional economy, sophistication and global idea exchange.
San Miguel County real estate sales saw the largest 1st quarter in history, with a dollar volume increase of 136% over the last 5-year average. With 4 sales over $9.5m in the last 12 months and 3 more pending at $14-39m, the $10m benchmark has become more common. Tom Cruise was asking $39m for his home that is now under contract and represents a new class of sales, as many owners who have heavily invested in the Telluride lifestyle recognize that they too will see appreciation. Less expensive properties regularly come to market but do not last long, we advise that buyers be prepared to move quickly when they do.
Recently, a notable pair of developers signed a contract to develop a Four Seasons Hotel in Mountain Village. It will take some time to clear due diligence and become fully entitled in order to break ground, but this is very exciting news. This added inventory along with the Hotel Colorado in town and a handful of other new projects promise to aid the inventory shortage.
As summer nears, we anticipate continued strong interest in Telluride. The availability of vacation rentals will be lessened from high demand and the tight real estate market. We recommend that summer visitors cement their plans and reservations quickly for everything including dinner reservations, guides, home rentals, chefs, camps, etc...and I am here to help if needed.
Read on for the full report, and contact me anytime to discuss current market conditions as they pertain to your goals.
Hope to see you in Telluride soon!