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Newsletters
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Title: |
The Real Estate Update |
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Author: |
Rick Fusting |
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Date: |
06/13/2006 |
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Good news for Telluride Visitors -- Delta airlines has committed to eight flights into Montrose (MTJ) for the 2006/2007 winter season. This will definitely make it easier for west coast travelers to fly into Salt Lake City and then on to Montrose/Telluride. For the east coasters and international travelers, the best news is that one of these new flights will be a direct Atlanta to Montrose Saturday flight. They are talking about extending this service for the summer season as well. I think this is great news for our local economy as it will bring new visitors into the area.
If you have not booked your summer tickets, you may want to do so as the summer bookings are already ahead of last years reservations.
The Real Estate Update.
Telluride Mountain Village
Homes: Many markets across the country are seeing increased inventory levels and hence home prices are dropping. This has not been the case in our local market as zero new home listings priced under $3M have come on the market since the end of ski season in the Mountain Village. There are currently only three homes on the market under $2M.
Land: Little inventory has come on the market during the spring off-season and the lots under $600K are disappearing. Therefore after these lots are gone it will be close to impossible to buy a lot, build and be under the $2M price range. I believe a quality lot under $500,000 will appreciate very well over the next couple years. Lots from $800K to $1.5M have been sluggish while the quality lots over $2M are being purchased, and it is tougher to find a quality ski in/out lot. The day is very close when buyers will begin buying older ski in/out homes and knocking them down to rebuild on the lot.
Condominiums: The reservations are stacking up on the St. Regis project, Lumiere and the project on lot 161CR.
Town of Telluride
Land, Homes and Condominiums. The trend seems to be the same for all segments of the Town of Telluride. Anything of quality or strong value will sell, and buyers should act quickly on these properties as they are getting harder to find. Then there are also a number of sellers who do not offer the same quality, but are still placing a very high selling price on their properties. Many of these sellers are happy with their asking prices and will wait for the market to move up to them. Buyers should look for value in properties that will suit their needs. At the end of the summer, I think the summer sales results will show that the sales pace slowed, and it will probably be due to the sellers who are not pricing their properties to sell.
Aldasoro: Sales started picking up last fall and the momentum is for prices to move up.
Ranch Properties: I am surprised that we have thirty- five acre tracts priced under $300K. Properties with the same attributes in Durango and Ridgway are selling for more.
The Cornerstone (Greg Norman) and the Hideout Lake (Jack Nicklaus) are two Golf Course Developments planned between Montrose and Telluride. The 1 to 3 acre lots will be priced between $200K and $500K. Drive time to Telluride will be one hour in non snow conditions. They will even have affiliated club houses in the Town of Telluride for skiing. There is a lot of research and planning that goes into these projects. Their research should tell the Telluride investor to buy any golf course property in Mountain Village under $500K.
Summary: Overall, as many people are getting somewhat scared of the nationwide slow down in real estate; I believe our market is still strong. Only in one segment of the market may we see prices drift back a little. Increased supply in many nationwide real estate markets might push prices down or keep them flat for a while. Our market has not seen the sharp, extraordinary gains that many national markets have seen – actually Telluride has been trending steadily up. A couple of concepts to keep in mind when comparing our market to other markets: (1) We do not have large homebuilders adding new inventory to our market. In the last three years, the only real subdivision that has been created is Idarado. These lots are priced over $1M and are released slowly. (2) Our County regulations make it almost impossible to cut land into small lots for development. Because we do not have this increased supply, our prices should continue to move up. (3) Lastly, many buyers in our market pay with cash or are in the upper tax brackets so they are not dependant on low interest rates.
I think we will see the strongest buying in the following segments: TMV Land under $500K, TMV homes under $2M, Ski in/out homes between $3M - $4M and Ski in/out homes over $10M.
Please call or email – I would be happy to go into more detail or answer any questions you may have. |
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