Telluride Market Update

Telluride Continues to Plug Away
Numbers Down but Notable Sales and National Predictions Encouraging

In a nutshell, Telluride is getting through it like everyone else. On account of the current state of the economy, or rather where it was during the first two quarters of 2009, real estate activity slowed considerably. After a string of high marks between 2000 and 2007, with the latter reaching record heights by year’s end ($710 million in total dollar volume),numbers changed significantly in 2008 and thus far in 2009. According to data compiled by the Telluride Association of Realtors. (TAR), overall figures between January and June 2009 were $80 million in total dollar volume, distributed over 105 total transactions. This is 54% lower than the first two quarters of 2008, which totaled $174 million and noticeably lower than earlier in the
decade when property values were less. TAR’s figures encompass the greater Telluride region, including San Miguel County, as well as occasional out-of-county sales (i.e. Montrose, Ridgway, and other communities).

But with a little optimism and acknowledgement that ebbs and flows are the nature of the real estate beast (albeit this ebb is a tad more drastic), it’s still possible to find a silver lining behind this dark cloud.

First of all, resort economies, once largely sellers’ markets, are now giving buyers a chance. With ample inventory to choose from and low interest rates, it’s a good time to make a purchase. Secondly, Telluride has endured negative market effects now for roughly 18 months. Certain experts predict the tides may start turning. The Wall Street Journal stated in a June 3, 2009 article, “In another sign that the housing market may have begun to recover, the number of people who signed contracts to purchase homes increased for the third month in a row.” The piece included data from the National Association of Realtors, which said its pending home sales index rose 6.7% from March (84.6) to April (90.3), and Joshua Shapiro, an economist with MFR, the Manhattan global economic consulting firm, was quoted: “Clearly, within the next couple of
months there’s going to be a decent increase in actual homes sales.” On another note, the
widely recognized financial analyst, Mad Money’s Jim Cramer, predicted back in September 2008 that the housing market would bottom in the third quarter of 2009
(read more at: http://skiresortmarkets.com).

As for Jim Cramer, he likely has as many foes as fans, but it would be comforting, nonetheless, if his prediction is correct. Perhaps the first two quarters of the year can be chalked up as part of the trip toward bottom, and the worst might in fact be over.

Please contact buzz@fedorka.com for further detail on the above article or about other real estate opportunities in Telluride.