A Look at an Improving Market

Telluride Planet
Feb 18, 2011

Overall, the San Miguel County real estate market of 2010 closely resembled the market of 2008. Both 2008 and 2010 significantly outperformed 2009, which suggests that our market reached some sort of bottom that year. In 2010, total sales volume was $318 million with a total of 327 transactions. 2010 saw an increase of 20 percent in terms of sales volume and a 19 percent increase in the number of transactions over 2009.

The market rebounded most solidly in the Town of Telluride, the Ski Ranches and Aldasoro Ranch. The Town of Telluride total sales rose 110 percent over 2009 to $107 million. The Ski Ranches, which only had two sales in all of 2009, bounced back with seven sales for a total of $8.3 million. Aldasoro Ranch, which also experienced a very slow 2009 with three sales, improved strongly in 2010 with eight sales for just over $20 million.

Mountain Village experienced only 10 percent growth in terms of total sales volume ending the year with just under $150 million in sales. The remainder of San Miguel County did not rebound from the unrest of 2009 and unfortunately experienced further decline of just over 50 percent in total sales volume. Our market performance often varies widely from segment to segment.

This was true in 2010. Buyers were very focused on value opportunities of higher end houses in the Mountain Village home segment, which came on strong last year. There were 19 Mountain Village homes sold in 2010 for $85 million for an average of almost $4.5 million per sale. This is a marked increase over 2009 in terms of sales volume when 18 homes sold for $48 million for an average of $2.7 million per home. The single family home segment in the Town of Telluride improved even more significantly than Mountain Village in 2010 by more than doubling 2009 in both total sales dollars and number of homes sold.

Last year there were 25 homes sold in Telluride for a total of $45 million while in 2009 only 12 homes sold for a total of $19 million. In the condominium segments, the Town of Telluride market came back very strongly in 2010 by nearly doubling sales compared to 2009. In the Mountain Village segment, performance improved by 16 percent over the previous year. The vacant land segments continue to be the weakest segments of our market affected by a lack of financing and with the increased availability of homes on the market for replacement cost or less. Only a handful of lots sold in Mountain Village while half a dozen sold in the Town of Telluride.

The general improvement of our real estate market in 2010 was reassuring especially for the Town of Telluride, which roughly doubled the transfer taxes or RETT it collected from real estate sales in 2010 compared to the year before. Looking into 2011 we continue to stay hopefully optimistic for continued strength in real estate sales and the overall economy.

*— Stewart Seeligson is director for the Telluride Association of Realtors. *

The foreclosure list does show some possible deals to come.  However, there are plenty of valued assets that are presently listed in the mls.  For example, a home in Ski Ranches once listed at 1.35m and now down to 899k with the tag line of “bring all offers”.

Over the past month there have been significant showings with new and old buyers circling back to evaluate high end real estate as a safe place to park money.  Many of these buyers have been commenting that once the market does rebound that the high end assets-property will be the first to appreciate at a faster rate.

Here is the foreclosure list: foreclosure-09-14-2010

If you have any questions or comments you may email or call, Jake

Sun setting at Kangaroo Ranch, Specie Mesa- www.kangarooranch.com

The sun beautifully sets at Kangaroo Ranch, www.kangarooranch.com, as well as with some colorful deals to be watched over on the foreclosure list.

Here is the 8-31-2010 foreclosure list for San Miguel County: Foreclosure Schedule as of 8-31-2010

One good value deal is 2010-11.  These are a bulk of lots that are ski in and out at 2+m.  Individual lots have been been put into contract and there are others to deal.  The strike price is in the 300k-400k price range.

2010-January to July, Year to Date Stats

Buyers and Sellers often ask what percentage are homes-condos-land selling from a list price.  The percentage remains as one indicator as to where the market is and has gone.

The above table shows PRE (Peaks Real Estate Sotheby’s International Real Estate) which is my brokerage and TAR (all Telluride Association of Realtors, which would include PRE) and where listings are selling.

Look at the TAR section to get a basic overview of where properties are selling from a list price.  Some of the percentages are rather significant but this is also due to listings being priced in 2008 and 2009 and not aggressively listing to today’s prices.  If a home was listed in 2008 or 2009 many of the initial list prices are going to be based off of 2006 and 2007 sales prices which represent the height of the bull market not only in Telluride but also on a national level.

The market in Telluride has actually began to stabilize and there are still good VALUE deals to go after and present a reasonable offer.  Much of the stabilization is also a result of many properties listing at an appropriate starting point.

Next entry will be on stabilization in comparison to 2009.

If you have any questions then I welcome you to call or email.  Best, Jake

If you have any questions you may call or email.  Best, Jake

Market Update July 2010

Key stat:

Market up 205% in 2010 in first four months of the year compared to 2009.  But, buyers are still hunting down value deals.

Best,

Jake

Here is the foreclosure list, see #2010-37 with debt of $2,162,000, which about half way down the second page.

229 N. Spruce, Telluride, Colorado. 1.5 blocks to Main Street

This home is a downtown compound with two homes on a 5,875 sqft lot. The front Victoria home has 4 bedrooms and 3 baths,which was remodeled in 1994. The back alley house has 3 bedrooms and 3 baths. The home is 1.5 blocks from main street and has nice views of the mountains from the backyard.  The price per square foot for the two homes is at $587.  These costs are below acquisition and build costs.

The second home of interest is #2010-20, which is a condo with 238k debt.  The condo is 1 mile out of town and will be listed shortly for appx 250k.  I actually just sold the least expensive condo at 244k with an assumption of a 7k special assessment.  This new unit for sale soon does present value.

Here is the foreclosure list: Foreclosure Schedule as of 6-29-2010

If you have any specific market requests you may email or call.  Best, Jake

April 2010 Telluride Sales

Recently, the ski area has decided to offer paid ski tours into Bear Creek. A great way for skiers without backcountry experience or knowledge to drop in and make some great turns.

Here is an article from the Denver Post.