2018 Q2 Telluride Market Report

Telluride

MARKET REPORT

Quarter 2 | 2018

The Market Report Telluride Real Estate Corp. is pleased to present our comprehensive market report for the second quarter of 2018. In this report, you will find an overall snapshot of the market as well as detailed information on the different market segments making up the Telluride region.

Telluride Real Estate Corp.

TRUSTED. EXPERIENCED. PROFESSIONAL. SINCE 1981.

Telluride Real Estate Corp. / Christie’s International Real Estate is proud to be one of the most established real estate brokerages in the region, with a team that includes over 35 licensed brokers, assistants and staff members. Our organization is comprised of only experienced, successful and dedicated full-time real estate professionals.

Our partners are deeply embedded in the community, having been directly involved in the planned development of the Telluride area as a world-class ski resort. Our owners and the majority of our Telluride real estate agents are longtime Telluride locals who are passionate about their careers and about living in this spectacular mountain town.

In a sense, we are ambassadors for this community, bringing Telluride to the rest of the world. In addition, the partners, brokers and assistants that make up the TREC team are some of the region’s most dynamic individuals – a group of people who share energy, enthusiasm, a sense of purpose, and an ability to get things going and get things done. Real estate is about on the cover personal relationships, and we strive to provide an unrivaled experience for our buyers and sellers from beginning to end and beyond.

Indeed, most TREC clients are clients for life.

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SOLD $6.25M

459 W. Dakota Avenue | Telluride

All data in this report is collected from Telluride Consulting and the Telluride Multiple Listing Service. All information is deemed accurate and reliable but is not guaranteed.

MARKET HIGHLIGHTS

}

$218.8M

{

225

{

$76.1M

{

}

63

{

}

DOLLAR VOLUME OF TRANSACTIONS

NUMBER

OF TRANSACTIONS

TREC’S DOLLAR VOLUME OF TRANSACTIONS

TREC’S NUMBER OF TRANSACTIONS

}

S I G NI F I C A N T S A L E

SOLD | See Forever Penthouse 131 $2,250,000 Listed by TREC/Christie’s

MARKET HIGHLIGHTS Sales in the second quarter of 2018 were on pace with the first quarter with a total of $218.8M in closed transactions YTD. $110.3M in transactions closed in the first quarter followed by $108.8M in the second quarter. 109 transactions closed in the first quarter and 116 in the second, totaling 225 YTD. TREC sales account for 35% of all Telluride regional transactions by dollar volume. TREC also garnered the highest sale transaction of 2018 with the significant sale of 459 W. Dakota Avenue at $6.25M. As revealed in Christie’s International Real Estate’s Luxury Defined 2018 report on the global luxury real estate sector, sales of million-dollar-plus properties in second-home and resort lifestyle destinations worldwide soared in 2017. We are seeing that trend in the Telluride region with an increase in the number of high-end luxury sales.

The Town of Telluride gross dollar sales totaled $77.2M through Q2 ‘18, a decrease of 17%, likely due to a lack of high-end standing inventory, but average price per incident of sale ($3.511M) increased 25% and the value per square foot increased 17% over sales in 2017. These stats seem to signal investors continue to focus on the Historic Telluride market with limited supply. Town of Telluride condominium sales largely kept pace YTD with 2017 ($40M vs. 46M) while Telluride Mountain Village condos witnessed a 6% increase in sales to $52.1M. Notably, vacant land sales in both the Village and Town increased to $16.3M, up 85% as standing inventory is absorbed, with buyers beginning to focus on “build to suits.” Mountain Village high-end luxury homes continue to trade well. YTD, Mountain Village has experienced three sales over $4M, with seven transactions between $2-4M. With over $128M pending sales in the overall market and the heart of the summer and fall selling season ahead of us, the future of the Telluride marketplace remains quite robust.

...

YTD Q2 2018

Q2 2018

225 (down 27%)

# OF TRANSACTIONS

116

$218.8M (down 18%)

$ OF TRANSACTIONS

$108.5M

$6,250,000

HIGHEST PRICE SOLD

$6,250,000

$972,444

looking ahead

$128M

under contract

AVERAGE PRICE

$935,345

MARKET HIGHLIGHTS QUARTER 2 | 2018

70

TRANSACTIONS $1-5 MILLION

112

TRANSACTIONS UNDER $1 MILLION*

1

TRANSACTION $5 MILLION+

*excludes mining claims, parking spaces, fractionals, deed-restricted properties

SALES DISTRIBUTION BY LOCATION TELLURIDE

30%

39%

31%

SALES DISTRIBUTION BY SEGMENT SINGLE FAMILY

22%

MOUNTAIN VILLAGE

48%

REMAINDER OF COUNT Y

28%

2%

CONDOMINIUM

VACANT LAND

OTHER

Market Details | QUARTER 2 2018 SOLD | 329 N. Willow Street $2,350,000 Sold by TREC/Christie’s

Town of Telluride

# OF TRANSACTIONS 55 (down 27%)

YTD QUARTER 2 | 2018

$ OF TRANSACTION5 $77.2M (down 17%)

Sales in the Town of Telluride are down, mainly due to limited inventory. With options tightening, buyers are willing to pay more for single family-homes, including TREC’s significant sales of $6.25M and $2.35M residences in Q2. Additionally, buyers continue to buy vacant land, resulting in a 70% uptick in dollar volume in that segment, and build to their liking, particularly mountain modern projects. Construction remains busy in town with home construction and renovation in addition to luxury townhome and condo projects.

MAJOR MARKET SEGMENTS Single-Family

Condo/Townhome

Vacant Land

# OF TRANSACTIONS

7

39

7

$ OF TRANSACTIONS

$25.7M

$40.4M

$6.7M

AVERAGE SALE PRICE

$3,671,429

$1,035,898

$957,143

MAX SALE PRICE

$6,250,000

$4,300,000

$3,200,000

7

14

1

# OF PENDING TRANSACTIONS

Market 2018 MarketDetails Details ||QUARTER YEAR END2 2017

Mountain Village

# OF TRANSACTIONS 72 (down 6%)

YTD QUARTER 2 | 2018

$ OF TRANSACTION5 $101.3M (down 8%)

Mountain Village luxury homes sale continue momentum through 2018 with three sales over $4M, all of which were TREC significant sales at $4.15M, $4.3M and $4.475M. Entry level lots to top-tier land parcels are selling, with sales up 85% YTD Q2 ‘18 versus YTD Q2 ‘17. Overall, Mountain Village saw a 8% dip in dollar volume but remains on track considering the Madeline Hotel’s inventory as been exhausted.

MAJOR MARKET SEGMENTS Single-Family

Condo/Townhome

Vacant Land

# OF TRANSACTIONS

10

49

12

$ OF TRANSACTIONS

$34.7M

$55.4M

$11.1M

AVERAGE SALE PRICE

$3,470,000

$1,130,612

$925,000

MAX SALE PRICE

$4,475,000

$3,050,000

$3,800,000

4

12

4

# OF PENDING TRANSACTIONS

SOLD | 98 Palmyra Drive

$4,150,000 Listed + Sold by TREC/Christie’s

Market Details | QUARTER 2 2018

SOLD | 153 Wapiti Road

SOLD | 15 High Noon Lane

Listed at $1,825,000 Listed by TREC/Christie’s

$1,150,000 Listed + Sold by TREC/Christie’s

Remainder of County

# OF TRANSACTIONS $32.5M (down 37%)

YTD QUARTER 2 | 2018

$ OF TRANSACTIONS 59 (down 33%)

Sales in the remainder of the county slowed, notably single-family homes which dropped nearly 48% in dollar volume compared to Q2 ‘17. Single-family home sales have slowed in the Ski Ranches and Aldasoro neighborhoods, which are typically popular buys, likely due to decreased inventory. Land sales saw a 5% decrease in dollar volume. The remainder of the county is expected to rebound this summer as potenial homebuyers return to the area for the summer selling season.

MAJOR MARKET SEGMENTS Single-Family

Condo/Townhome

Vacant Land

# OF TRANSACTIONS

24

1

34

$ OF TRANSACTIONS

$17.6M

$350K

$14.5M

AVERAGE SALE PRICE

$748,858

$350,000

$426,471

$4,725,000

$350,000

$2,700,000

13

0

5

MAX SALE PRICE # OF PENDING TRANSACTIONS

DWIGHT | MARTIN TEAM Recognized by Christie’s International Real Estate for Significant Sales Exclusive Sales Team at Telluride Mountain Lodge Jon Dwight | 970.708.0691 | jon@gotelluride.com Jon’s hometown is Aspen, CO. He is a 1989 graduate of the University of Colorado. Jon’s family includes wife Martha and five great kids, Alex, Max, Wyatt, Lauren and Gavin. Jon has been a licensed commercial/residential real estate broker since 1991 with a diverse background in construction and real estate development. He joined Telluride Real Estate Corp. in 2002 and has specialized in representing projects such as Bear Creek Lodge, Sunnyside Ranch, Cornerstone, Brown Dog Ranch, as well as servicing a select group of highly valued clients. As an owner and director at TREC, Jon regularly attends Christie’s Owners’ Conferences, representing TREC and networking on an international level. Jon currently serves as Chairman of the Board of the Telluride Regional Airport Authority and is past Member of the Board (Residential Seat) of the Telluride Mountain Village Owners Association. Jon loves flying airplanes, skiing, hiking, mountain biking and traveling anywhere in the world.

“Telluride is an unmatched year round resort that offers an authentic Colorado experience. This just doesn’t exist in other resorts anymore.”’

Alex Martin | 970.729.1691 | alex@gotelluride.com Alex’s hometown is Olathe, KS. He is a graduate of the University of Colorado-Boulder. Alex’s family includes wife Sage and two sons, Henry and Jake. Alex joined TREC in 2004, working with a select group of highly valued clients and representing development projects such as Sunnyside Ranch, Cornerstone, and Brown Dog Ranch.

Prior to joining TREC, Alex enjoyed a 14-year sales and management career in litigation support and data storage technology in the San Francisco Bay Area. Alex and Managing Director Jon Dwight have been working together since 2004 and are partners in the Dwight | Martin Team. In his free time, Alex enjoys skiing, hiking, camping, mountain biking and sailing.

“From my first backpacking trip to the San Juans more than 30 years ago, I knew this special part of Colorado was where I needed to be.”

Marcin Ostromecki | 970.708.4119 | marcin@gotelluride.com Marcin’s hometown is Milwaukee, WI. He graduated from the University of Wisconsin- Milwaukee with a BA in Marketing. Marcin’s family includes wife Stacy and black lab Atlas. Working in the ski industry for over a decade, Marcin is no stranger to ski towns. With an international marketing background and experience in resort markets, Marcin joined TREC in 2014 to work alongside Jon Dwight and Alex Martin. In his role as Marketing Manager and Broker Associate, he believes that when a property is packaged and presented appropriately, sellers are positioned for success. Marcin is an avid skier and also enjoys mountain biking and hiking with his pup.

“I think the best part about Telluride is that it’s a real town.

There’s a genuine sense of community here. It’s not just a product of the ski resort. I think that’s why it’s retained its unique character.”

SIGNIFICANT SALES DWIGHT MARTIN Sales

128 Victoria Drive | $4,250,000 Sold by Dwight | Martin Team

Sunnyside Ranch, Lot 5 | $2,160,000 Listed by Dwight | Martin Team

Sunnyside Ranch lot 6| $2,149,000 Listed by Dwight | Martin Team

145 Russell Drive | $3,649,500 Listed by Dwight | Martin Team 153 Wapiti Road| $1,650,000 Listed by Dwight | Martin Team 710 Mountain Village Blvd. | $6,000,000 Sold by Dwight | Martin Team

TOP 10 SIGNIFICANT SALE OCTOBER 2016

129 Victoria Drive | $3,200,000 Sold by Dwight | Martin Team

Telluride Ski Resort| $40,000,000+ Sold by Dwight | Martin Team

300 Prospect Falls B | $2,450,000 Sold by Dwight | Martin Team

Heritage Crossing Commercial Space | $900,000 Listed by Dwight | Martin Team

153 Waipiti Road $1,425,000 Sold by Dwight | Martin Team

Lot 161 CR | $8,100,000 Sold by Dwight | Martin Team

Diamond Ranch Lot 2 | $2,080,000 Listed by Dwight | Martin Team

UNDER CONTRACT BY

at a record price per sq ft Fir House Penthouse Three | Offered at $8,000,000

gotelluride .com christiesrealestate.com | jon.searchtellurideproperties.com T@gotelluride P@telluride_homes M@TellurideRealEstateCorp

Let’s talk numbers! Contact us below.

DWIGHT | MARTIN TEAM

Jon Dwight | 970.708.0691 | jon@gotelluride.com Alex Martin | 970.729.1691 | alex@gotelluride.com Marcin Ostromecki | 970.708.4119 | marcin@gotelluride.com

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