There's no doubt that 2014 was a year of growth and optimism on all fronts in Telluride and the region. Transfer and sales tax revenues reached new 'recent' highs, with both Telluride and Mountain Village seeing substantial increases in visitors. 2014 was an upbeat year. According to Judy Kiernan's Telluride Consulting, 2014 real estate sales in Telluride/Mountain Village and San Miguel County were the best since 2007, both in volume and the number of sales. The chart below reflects what we already know, that 2007 was a helluva peak but that we're still 33% off in dollar volume from that memorable high point year.
Reaching $ 507 million with 523 sales in 2014 was a post recession high! The sale of the Madeline Hotel for $ 40 million in August tipped the scale a bit. Additional noteworthy trends include a very positive 27 home sales in Mountain Village totaling $ 90.4 million, which definitely puts the bottom, of a previously anemic market segment, in the rear view mirror. An impressive 95 Town of Telluride condominiums sold at $ 85.3 million.
With a solid 2014, what does 2015 hold in store for Telluride real estate? With ever fewer high end homes available in Town, we're happy to see four new separate residential projects which will generate 15 single family/duplex units. Based on initial indications by the developers, these units will all be marketed at or above $ 1,100 per square foot. In Mountain Village the 14 units which have come on the market at the Madeline Hotel will be sought after. Three units are already under contract. They will have 71 units in total to sell, so plenty of inventory for all of us to work on. Residential homes for sale (66) in Mountain Village still represents a good opportunity with prices ranging from $ 500 per square foot and up.
My prediction for 2015 is that we'll experience a slight drop in numbers from 2014. Because Texas is a substantial market for Telluride both as investors and visitors, the pain that they are feeling because of the drop in oil prices, will affect us this year. Of course the flip side is that lower energy costs should be a boost for travelers in general. Direct air travel, although Montrose numbers are up, continues to be a thorn with no commercial service into Telluride.
The good news for the consumer is that although we seem to have turned a very long corner, Telluride and especially Mountain Village continue to have superb inventory, at realistic market values... still.
Year Dollar Volume # of Sales Avg. $/sale
2005 $724.5 million 883 $820,500
2006 $681.9 million 709 $962,000
2007 $756.6 million 631 $1,200,000
2008 $343.2 million 339 $1,000,000
2009 $265.7 million 276 $963,000
2010 $317.6 million 327 $971,000
2011 $247.4 million 383 $646,000
2012 $364.7 million 444 $821,000
2013 $342.2 million 410 $835,000
2014 $507.1 million 523 $970,000