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Newsletters
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Title: |
Telluride Market Update May 2010 |
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Author: |
RICK FUSTING |
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Date: |
05/28/2010 |
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Dear Friends,
This update was sent via email to Rick Fusting's clients in May and then posted here at a later date. If you would like to receive these emails on time please email Rick at rickf@telluridecolorado.net
The Telluride real estate market is gaining traction. The great deals are being bought now, and I believe that most of the best deals will be transacted before the end of the summer. In the future, there will be more foreclosures and more distressed properties, but I do not believe we will have as many choices of opportunities. If you have been waiting to move on a distressed deal, then I recommend you act before another buyer does.
In San Miguel County, the April dollar volume was 350% higher than April 2009. Transactions in the same period were 23% higher. The month of May transactions and dollar volume will be just as strong, as many buyers looked during the ski season and then submitted offers after the ski area closed. From January through April 2010, San Miguel County dollar volume increased by 114% and the number of transactions was 45% higher than in January through April of 2009.
By the increase in transactions and dollar volume, it is obvious that sales have not been limited to distressed deals only. A broker in our office sold a $46M home outside of San Miguel County. Year to date, three outstanding homes have sold in the Town of Telluride for $9.9M, $8M, and $5.995M. This spring also brought the sale of a $10.1M Mountain Village spec home. Sales prices are lower than three years ago, and buyers are taking advantage of these price reductions. I believe this strength will continue through the summer.
At the beginning of winter there were 7 homes in TMV that I thought were very good values. All seven have sold, and it is a little harder to find these deals in TMV homes right now. (There will be more) Now that we are moving into the summer sales period, I believe the better deals in the Town of Telluride will be bought.
The traction is definitely segment oriented as the most liquid segments will do better, while some over-built segments, like condominiums in TMV over $3M, will have an extended period of declining prices with major price reductions ahead. It is certainly a mixed market, and buyers need to look at each segment individually and look at inventories before purchasing.
Compared to last year at this time, sellers are more open to the low ball offer as they see it as a starting point, and buyers are placing respectable offers on the better deals as they realize that there is buyer competition for these properties. There were many occasions last winter where potential buyers would wait on a value play in hopes that the price would drop further, only to see the property be contracted by another buyer in the following weeks.
Attached are three newspaper articles. I have highlighted some selections that I see as positives for our market.
Overall the market is gaining traction, and there are positive signs for the Telluride region. If you are thinking of getting into the Telluride Market, then some of these deals should be analyzed closely and acted upon. Certainly there will be more price reductions on some properties, but many of the current deals will not get better. As always I encourage any questions or thoughts.
Sincerely,
RICK FUSTING
Peaks Real Estate Sotheby's International Realty
c. 970-708-5500
rickf@telluridecolorado.net
www.telluride-colorado.com
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