Source: Telluride Consulting
Source: Telluride Consulting
The San Miguel County real estate market closed out its incredible year with the months of August through December all exceeding $125M each month in dollar volume. The total dollar volume for ‘20 set an all time record in the county with $1.16 billion in sales, a 54% increase from the previous all-time high set in ‘07 at $756.6M. The number of transactions in ‘20 totaled 814 compared to 631 in ‘07, a 29% increase. Overall the region saw a boom in real estate sales through the COVID-19 pandemic in 2020, something never before seen in the area’s history.
The top three dollar volume states for buying in CO in ‘20 (excluding CO) were: Texas ($320M), Arizona ($91M) and California ($77.5M), with buyers from Colorado coming in at $288M The year finished strong with a 166% increase in dollar volume for the month compared to the prior 5-year average of December sales. Comparing Dec. ‘20 to Dec. ‘19, there was a 95% increase in total dollar volume and a 51% increase in total number of transactions. Year End 2020 MARKET OVERVIEW YTD DOLLAR SALES 95% INCREASE over 2019 The year-to-date (YTD) 2020 number of transactions (814) is up 51% over December 2019 (540). The year-to-date dollar sales for December ‘20 reached $1,161,696,436, a 95% increase compared to $594,325,462 in December ‘19. The YTD average sales price per unit for 2020 is $1,427,145 compared to $1,100,603 in 2019, a 30% increase.
Buyer’s were purchasing much of the available vacant land around the county in October, with 26 vacant land sales Oct. ‘20. With Single-Family Homes and Condominium inventory in the Town of Telluride and Mountain Village significantly reduced due to market activity and cost per squarre foot at all-time highs, it appears many buyers are now looking for vacant land to build. Highlights from the month of November included 16 Condominium sales in Mountain Village at an average sales price of $1.5M and 8 Single-Family Home sales in Mountain Village at an average sales price of $4.5M. Vacant land sales indicate that many investors are wanting to build dream homes to escape the cities.
Source: Telluride Consulting
Source: Telluride Consulting
The Telluride Real Estate market is enjoying a strong 4th Quarter of 2019. The market is responding to the value in Mountain Village properties compared to the higher prices in Telluride. Inventory is a bit depleted. The outlook for Telluride Real Estate continues to remain favorable as a lifestyle influenced long term investment.
Here are the recent Local, State and National Governmental updates relevant to Telluride Real Estate
Issue 300 Passed in Telluride
The Town of Telluride now has a short-term rental tax as voters approved Ballot Issue 300 on 56 percent of the ballots, according to complete but unofficial results in early November. The new 2.5 percent tax will feed into the town’s Affordable Housing Fund, pushing the total tax on short-term rentals from 12.65 percent to 15.15 percent. The tax does not affect hotel rooms.
Election Results – Telluride Has a New Mayor
Telluride’s new mayor DeLanie Young defeated incumbent Mayor Sean Murphy by a 53-41 margin that was sufficient to negate the need to set instant runoff voting (IRV) protocols into action. David Oyster finished a distant third with 6 percent.
In the Telluride Town Council race, Telluride voters sent the incumbent, Lars Carlson, back to work on Town Council and gave Adrienne Christy a handy second-place finish and a seat on council with 39 percent and 38 percent of the votes, respectively. Carlson was the top vote getter with 459 votes to Adrienne Christy’s 429.
Young, Carlson and Christy took the oath of office Nov. 19.
Proposition CC Fails at the Statewide Level
Proposition CC, a statewide initiative that asked voters to give up statewide TABOR refunds indefinitely was defeated in early November by a 55% - 45% margin.
Voters were NOT being asked to give up your state-issued income tax refunds. This only deals with excess money the state collects that is currently required to be refunded to voters.
Not every year, but in some years, Colorado must refund you money because of the Taxpayer’s Bill of Rights, which you might know as TABOR.
Voters passed TABOR in 1992. The Constitutional amendment requires the state and local governments to get voter approval before enacting new tax increases or bonds, and it puts a cap on how much tax money Colorado can collect and spend. The rate is based on inflation and population. If the state collects too much, you get back money.
Proposition DD Passes Statewide by a Razor Thin Margin
Colorado voters have approved a ballot measure legalizing sports betting and taxing it to help fund a state water conservation plan. Proposition DD passed 50.7% - 49.3%. It had bipartisan support and only token opposition. The election was so close that the outcome could only be determined after each and every vote was tallied.
The measure allows Colorado's 33 casinos to start offering wagering on professional, collegiate, motor and Olympic sports in May. Both in-person and online wagering are allowed.
Colorado can legalize sports betting because of a U.S. Supreme Court ruling in May 2018. However, Colorado law explicitly makes sports betting illegal. DD attempts to make it legal, while at the same time initiating a new voter-approved tax on the revenues from sports betting, to be spent on Colorado's Water Plan.
National News - Agencies Increase Residential Appraisal Threshold
On September 27, 2019, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively “the Agencies”) adopted a final rule increasing the threshold for requiring an appraisal in residential real estate transactions from $250,000 to $400,000. Federally related transactions under $400,000 will require an evaluation, rather than a full appraisal, to determine value of the real estate in question. A federally related transaction is a non-Fannie Mae or Freddie Mac transaction and a non-federal financed transaction, such as loans under the Federal Housing Administration, the Rural Housing Service or the Department of Veterans Affairs.
Source - Telluride Realtor Association Government Affairs
The Town of Telluride proper continues to be a robust real estate market with all listed inventory now over $1,300/ft average.
The market is seeing the value in Mountain Village homes. The sold price year to date 2019 of Mountain Village homes is 89% of the Listing price where the rest of the market is at 94% of original listing price.
San Miguel County, CO Total year to date dollar volume is down 8% and total real estate transactions are up 4%.
Please contact me for additional information or specific questions.
Here is the Commercial Real Estate update for Telluride, Colorado as of September, 2019
Source: Telluride Real Estate Brokers
Whole Building Sales:
The Bell Building, 217 West Colorado, sold 6/1/2018 for $2,995,000 MLS #32563
The Pederson Building, 398 West Colorado, sold 10/5/2018 for $7,440,000 MLS #35732
The Bank Building, 109 West Colorado, sold 11/15/2018 for $2,450,000 MLS #35785– TREB Sale
Plunge Landing Building, 290 S Townsend, sold 2/26/2019 for $5,700,000 MLS #37427
221 South Oak, sold 7/17/2019 for $3,850,000 MLS #36908
Commercial Condominium Sales:
221 East Colorado Ave Wasatch II #J, sold 12/13/2018 for $1,035,000 MLS#35515– TREB Sale
Art House Corner of Fir and Pacific, sold a second time in 2 years on 1/15/2019 for $980,000 MLS #36750
217 East Colorado Ave Wasatch II E &F, sold 5/14/2019 for $2,327,500 MLS # 36496
Pacific House, 124 East Pacific, sold 5/31/2019 for $735,000 MLS #35759
The Following Office Spaces Sold:
New San Juan Office suites 204, 220 East Colorado Ave. sold 11/30/2018 for $90,000 MLS #36369– TREB Sale
Black Bear Unit 202, 101 East Colorado, sold 3/8/2019 for $570,000 MLS# 36861
Availability in the commercial sector is still very slim and limited.
Current Whole Structure Commercial Properties Listed Include:
Fly Fishing Store, 121 West Colorado, Asking price $3,400,000 MLS #37309. This includes a full HARC approved set of redevelopment plans– TREB Listing
The Dahl Haus, 122 South Oak Street, Asking price $3,000,000 MLS #37105– TREB Listing
121 North Pine Street Storage/Residential, Asking price $3,000,000 MLS #34234
115 West Colorado, back to the market at Asking price $4,750,000 MLS # 37459
Commercial Spaces Listed Include:
New San Juan Office suites 201 & 202, 220 East Colorado Ave. Asking Price $215,000 MLS #3691– TREB Listing
214 East Colorado, Asking price $869,000 MLS #36843
Dakota Space, 220 East Colorado, Asking price $1,725,000 MLS #36984 For Real Estate. Asking price $1,850,000 MLS #36890 For Real Estate and business.
Butcher and Baker Building, 201 East Colorado, Asking price $3,500,000 MLS #37108
TBD S FIR STREET 2 Fir House Commercial 1, Asking price $1,010,000 MLS #33926
TBD S FIR STREET 2 Fir House Commercial 2, Asking price $1,425,000 MLS #33928
Recently Expired/Withdrawn Properties:
115 West Colorado , Asking price $4,400,000 MLS #35263– This has returned to the market at $4,750,000 MLS # 37459
373 West Colorado Unit 5, Asking price $999,000 MLS #36611
A Few Notable Changes in Business Moves and Startups:
The Last Dollar Saloon and the new National Restaurant behind the Last Dollar are open.
The Town of Telluride is completing the construction of the building on south Fir and Pacific on what Is locally known as the S.M.P.A. lot. This building contains underground parking, The Ah- Haa School for the Arts and Affordable Housing.
The Merriweather four corners project is moving along, one building on the corner of Fir and Pacific is complete. The Transfer warehouse received a facelift and has been conveyed to Telluride Arts, and the main building to the south of the Transfer warehouse is being finished.
The Pederson building on Colorado Ave. on the corner of south Aspen is approaching completion.
The Old Belmont and Shanghai buildings are undergoing a significant restoration and renovation.
Oxbow Leather has moved to 217 East Colorado Ave.
The Hotel Ajax site has been sold and new plans are expected soon.