As the summer selling season comes to a close, we are seeing the dollar volume of sales down only 9% from last year, however, the number of transactions is down 31% in San Miguel County. Not to much surprise, average sales prices in the county have increased 31% YTD over the record-setting 2021. Overall, the dollar volume for the Telluride and Mountain Village markets are down YTD 11% and 7% respectively, yet average sales prices are up 12% and 38%. In general, the Telluride area market now seems to have reached a plateau.
Even as buyer demand has moderated, inventories still have not increased much as most people are very happy with their ownership and are not looking to sell. Limited affordability (exclusivity), low inventory, and moderate demand are not putting enough downward pressure on pricing at this time to drive prices down from a balanced market.
The key market trend to monitor now is inventory. Despite a decline in sales activity, inventory is still historically very low and prices are up over 30%. If inventory increases, we may see more price improvements, but this phenomenon is simply not likely on the quality, coveted properties which continue to garner strong interest. This coveted group tends to include newer-construction or newly remodeled homes and condos in Telluride and Mountain Village, with desirable vacant land a close alternative, although most local architects and contractors are already booked up for the foreseeable future.
As for the effects of global economics on pricing, Buyers and Sellers have a difference of opinion. Buyers feel it’s their bargaining chip for negotiating list prices down, while well-healed Sellers tend to be patient and will continue to enjoy their asset as a happy alternative to selling. It will be interesting to watch the list-to-sale price ratio over the coming months to see if sellers continue to hang tight to their asking prices or, conversely, if buyers begin to finally reap more negotiating power.
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!
- Anna
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