Telluride Real Estate Impact
As reported by Telluride Consulting, the 2008 real estate sales have slowed significantly. The 2007’s record volume of over $750 million was reduced by roughly 50% last year to $339.2 million with 338 transactions, reflecting a dollar sales volume more inline with the first few years of the decade. Although the market slow down throughout the nation has been coupled with significant price reductions, Telluride regional prices seem to be lower, but holding steady. For example, the average transaction in 2003 was valued at $579,000, while the average transaction in 2008 valued over $1,000,000 per transaction; this is down from 2007 when the average value was $1,200,000 per transaction, roughly a 16% drop. It is difficult to pinpoint the reasons for this, but factors that contribute are Telluride properties are purchased with more personal discretionary funds and at higher personal equity levels. Most loans, if there are loans, have a low loan to value ratio, and sub-prime loans are almost non-existent. Having analyzed and followed the Telluride real estate market for more than thirty years, this is a significant market slowdown that creates buying opportunities particularly of homes and other properties built for speculation that developers and builders are willing to sell at a discount. But quality properties, as usual, still come at a premium price.