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Telluride, Mountain Village and regional real estate breakdown for 2023……

As 2023 draws to a close, a noticeable transformation is observed in the real estate landscape of San Miguel County. Clear indicators of the bygone era, characterized by historically low mortgage rates and intense home-buying activity, have become apparent. The Town of Telluride, the Town of Mountain Village, and the surrounding region wrapped up the year with a total sales volume of $865.73 million across 445 transactions. This marks the lowest annual sales figure since 2013 (410 transactions). The year concluded with a 22% decrease in dollars and a 24% decrease in the number of transactions compared to the previous year, making it the fourth-highest grossing year in recent history. In comparison to the prior 5-year average, the total dollar volume has only decreased by 10%.

Telluride’s market contributed $231 million (27%) to the annual sales in the county, while the Mountain Village market generated $440 million (51%), and the remaining county areas amassed $194 million. The average sales price saw a 2% increase from 2022 to 2023, reaching $1,945 million (22%).

Coming off the unique COVID years, 2024 appears to be returning to a more ‘normal’ state. If the government follows through with lowering interest rates in the spring, it is likely to boost consumer confidence and lead to more local transactions. Increased interest from investors and the ongoing desirability of the area continue to attract buyers.

Supply and demand economics affirm that the Telluride real estate marketplace, despite occasional declines in sales, has remained resilient in terms of value during economic downturns. The Telluride region is surrounded by federally-controlled property (USFS and BLM), limiting future growth to approximately 14,000 private acres. Almost all of the private land is subject to a master plan allowing for the development of fewer than 4,000 single-family equivalents on about one-third of the mentioned land. This density is a small fraction of allowable densities in other major resorts, and the assurance of future controlled growth positively influences the marketplace in terms of both volume and value.