As we parse through 2022’s first quarter data here at Telluride Properties, we find that most resort markets have seen a decline in the number of sales year-over-year due to a lack of inventory but mixed results for dollar volume of sales. While a few markets such as Jackson Hole may be experiencing dollar volume declines, significant dollar volume increases are still happening in Telluride, Big Sky and Aspen (while the Hamptons remain steady). This may indicate a change as we emerge from the pandemic, where radically low inventories are our own “new normal” (only 5 homes currently available in Telluride and 9 in Mountain Village), causing an overall decline in sales volume while values in these areas continue to rise significantly; median prices in these markets have sailed 13-51% over the past year.
In the first quarter, Telluride homes and condos garnered record average prices per square foot at $2,127 and $1,897 respectively, while Mountain Village also reached all-time highs of $1,136 and $1,102. As new properties come to the market listed at 10-20% above previous sales, we have begun to see longer Days on Market, particularly in Mountain Village, perhaps indicating a shift towards a more typical supply/demand balance at the market’s new level. Nonetheless, as price resistance creeps in, buyers are discovering that the rental market is very thin and quite expensive, drawing them back to purchasing. As challenging as it all may seem, Telluride Properties continues to find opportunities, on-market and off-market properties, for our buyer clients who understand the market and act swiftly when advised.
Conversely, we are regularly asked, “Is this the height of the market and the right time to sell?”. Sure, it may be a good time to sell if you are looking to leave and put your money elsewhere, but this is not the height of the market. If you are a seller wanting to take advantage of this market, pricing is paramount to success. Everyone wants to garner as much money as possible, but pricing too far ahead of the market can undermine your value over time. Telluride Properties brokers as a whole are hyper-focused on this nuance and can advise you on how best to price your property.
Telluride remains a top destination to invest in a special lifestyle while hedging inflation and enjoying financial appreciation. While Telluride is certainly maturing into a high-end resort, it still is, and always will be, a town with a lot of soul and that is what drives this market.
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!