In Telluride, regional real estate dollar volume and number of sales continue to rise, as evidenced by sales figures from the first five months of 2006, compiled by the Telluride Association of Realtors. Total dollar volume for the region from January through May 2006 was $278 million, a figure that is considerably larger than the same time period in 2005 and 2004 — $234 million and $250 million, respectively.

This puts the 2006 figure 19% higher and 11% higher, respectively, than the 2005 and 2004 figures (and a whopping 119% higher than 2003’s $127 million!). From 2001 to 2006, from the months of January to May, the regional real estate market has witnessed a compound annual growth rate in total dollar volume of 15.2%.

PROPERTY BREAKDOWNS

January 2006 was evidence that condominium sales are still tremendously strong in Telluride and Mountain Village as total dollar volume for condos was $34 million (more than half the dollar amount for the month overall) distributed over 20 sales, meaning the average price for a condominium sold during January was $1.7 million. Some of the bigger sales during the month were in Mountain Village, with four condominiums for over $3 million, four for over $2 million, and four for over $1 million.



In February 2006, residential single family home sales were at the highest for the year so far, bringing in $28 million in total dollar volume distributed over 23 transactions, meaning the average price for a home in the region (including Telluride, Mountain Village, Ridgway, Cortez, Nucla, Naturita, Norwood, Rico and the area mesas) during February was $1.2 million. The largest transaction during February was a $5.9 million residence in Mountain Village.

The highest-grossing month for land sales thus far in 2006 was May with $25 million in dollar volume. This figure was distributed over 25 transactions, meaning that the average price for a parcel of land in the region during the month of May was $1 million. The most significant land sale during May 2006 was a Mountain Village parcel that sold for $6.4 million. Other notable sales during the first five months of 2006 include two larger parcels of land — one 35-acre parcel at Sunnyside Ranch for $5.6 million and a 70+ acre parcel bordering the permit boundary of the Telluride Ski Area for $5.7 million. And in March, a residential single-family home in the Town of Telluride sold for $6.9 million, the largest sale in the Telluride Market thus far. Market

LOOKING AHEAD

Properties of all types, including fractional and commercial/industrial properties (which so far have netted $4.6 million and $6.5 million, respectively, in 2006), are maintaining strong performances in the market, and overall total dollar volumes continue to increase steadily when compared to previous years. In addition, the summer and fall months of 2005 brought in some of the highest total dollar volume for that year and if history has any intention of repeating itself, the months to follow in 2006 should be nothing short of impressive.

The regional real estate market accomplished quite a bit in a few short months, making the summer market extremely successful and adding to an already thriving year. Transactions on all fronts and in all categories were strong as figures from May through mid-August soared. The total dollar volume for the threeand-a-half month period (May 1 thru August 15) was $169 million, and has already surpassed last year’s figure of $158 million for the entire summer (May 1 thru August 31).

The average dollar value for property in the region has increased when comparing the summer months of 2005 to the summer months of 2004. Last year’s average through the end of August was $592,000 and this year’s average through mid- August was $707,000, a 19% increase. August 2005 started out as a strong month, boasting $35 million in total dollar volume and 42 transactions in just the first fifteen days of the month, compared to the entire month of August 2004 which had $40 million in total dollar volume distributed over 84 transactions. In turn, the average dollar value for property increased to $836,000 in August 2005 from $477,000 in August 2004, a 75% increase.

SINGLE FAMILY RESIDENTIAL
With regard to particular property types, single-family residential homes was the strongest market category this summer, bringing in $78 million in sales distributed over 76 transactions. While this total dollar volume is close to the $77 million from last summer (discounting that 2005 figures are currently only tallied through mid- August), there was a total of 94 single family residential sales in 2004. This translates to an increase in average property value from $819,000 to $1 million, a 22% increase.

Specifically in 2005, June boasted $22 million in single-family residential sales, compared to $17 million the previous year, with two sales over $5 million. These two large sales were Mountain Village homes, one for $6.4 million and one for $5.3 million. In addition, there were two Mountain Village homes sold for $2.4 million and $2.1 million, as well as a Ski Ranch home for $1.2 million. July was equally as impressive with $26 million in single-family residential sales, compared to $24 million the previous year, with the most expensive sale being a Mountain Village home for $3.4 million, followed by an Aldasoro Ranch home for $2.9 million.

CONDOMINIUMS Condominiums sales were also high this summer with $48 million in total dollar volume and 57 total transactions. During the 2004 summer, condo sales brought in $36 million and 62 transactions, meaning that average condominium price has risen dramatically in one year from $580,000 to $842,000, a 45% increase. With 2004 deemed the “Year of the Condo,” this is quite an outstanding jump in value and quite a tribute to the 2005 condo market.

When looking at monthly breakdowns, May 2005 and July 2005 both brought in $13 million in sales with 14 and 17 total transactions, respectively. In May, five of these transactions were over $1 million with the largest sales being two Mountain Village townhomes for $1.9 million and $1.8 million apiece. In July, six condominium sales were for over $1 million, the largest of which was a sale in Mountain Village for $2.1 million.

LAND As for land sales, they, too, presented an overall increase in average value from last summer to this summer, with $486,000 as the average price for this year, compared to $444,000 from last year, a 10% increase. The highest transaction was a residential parcel in Mountain Village, which sold for $6.9 million in May. The second highest land sale was a $2.6 million parcel that sold on Deep Creek Mesa.

YEAR-TO-YEAR COMPARISON In addition to 2005 being a very profitable summer in comparison to 2004, the months from May through mid-August were also vastly ahead of the same months during 2001, 2002 and 2003. The $169 million total for 2005 (only through mid- August) is a dramatic increase from the $97 million from 2003, the $97 million from 2002 and the $95 million from 2001. The year 2000, which for many years was precedent- setting and record-setting as far as the regional real estate market was concerned, brought in $191 million during its summer, yet that amount was distributed over 340 sales (compared to the 2005 ratio of $169 million to 239 total transactions). This translates to an average property value of $562,000 in 2000, compared to the $707,000 of 2005, meaning that in the past six summers, property values have witnessed an overall increase of 26%.

The first quarter 2005 real estate market followed suit with the year’s banner ski season, where record snowfalls attracted hoards of visitors. According to figures compiled by the Telluride Association of Realtors, dollar volumes totaled $136 million with the total number of sales at 213. Similar to the tremendous winter snowfalls that took January by storm, real estate sales in January were also deep, to say the least. Dollar volumes reached a total of $46 million, a 62% increase over 2004, with total sales numbers at 73, a 48% increase over 2004. This was significantly higher than January 2004, which witnessed $31 million in dollar volumes and 45 transactions. In comparison to recent years, January 2005 was leaps and bounds ahead in terms of total dollar volume as January 2003 recorded $18 million, January 2002 recorded $29 million and January 2001 recorded $37 million.

The 2004 real estate figures for San Miguel County were impressively high compared with those from the past four years. Year-end totals for 2004 were $534 million in total dollar volume and 790 for number of sales. These figures surpassed figures from 2003 by 50% in total dollar volume ($356 million) and 19% in sales numbers (661); 2002 by 90% in dollar values ($281 million) and 28% in sales numbers (618); and 2001 by 72% in dollar values ($311 million) and 38% in sales numbers (572). 

As for the year 2000, the Telluride Association of Realtors began compiling sales statistics in late February, leaving year-end totals incomplete. It was, however, recorded as a banner year for San Miguel County and therefore poses an interesting comparison to 2004 considering the latter surpassed the former on many fronts.

According to reports and news articles throughout the year, 2004 was recognized as the "Year of the Condo." With year-end condominium sales numbers at 203, 2004 was ahead of 2003 by almost 20%, 2002 by 18%, and 2001 by 34%. Dollar values totaled $128 million, which was 41% higher than those of 2003 ($91 million), doubled those of 2002 ($64 million), and more than doubled those from 2001 ($61 million). Although available data from 2000 shows sales numbers for condominiums as higher than in 2004, dollar values for 2004 exceeded those from 2000. In comparing March through December for the two years, 2004 boasts $102 million in condominium sales as opposed to the $94 million in 2000-a 9% increase.

Another notable property category for 2004 were single-family residential sales which totaled $234 million with 245 transactions, with March and April each bringing in $30 million in sales. It was a 55% increase in total dollar volume over 2003's $151 million with 186 transactions. In 2002, single- family residential sales totaled $130 million with 174 transactions and for 2001, single-family residential sales totaled $117 million with 180 transactions With regard to 2000, March through December showed $169 million in sales for single-family residences compared to the $201 million for the same time period in 2004. 

Vacant land sales were also impressive for 2004 totaling $141 million with 278 transactions. The number of sales increased at an average of 9% over the last four years. However, the total dollar volume in 2004 increased 58% over 2003, 96% over 2002 and 26% over 2001. Therefore the average price of vacant land now stands at $507,194 compared to $361,788 in 2003. Land sales for March through December in 2000 exceeded those in 2004, but this was largely in part to 2000's exorbitant sales for June, August and September, which together totaled $104 million.

Monthly Comparisons

When examining monthly breakdowns, 2004, once again, had remarkable totals. April was the strongest month for dollar values bringing in $61 million, $31 million of which came from single family residential sales. In 2000, 2001, 2002 and 2003, April wasn't nearly as strong as dollar values totaled $36 million in 2000, $20 million in 2001, $21 million in 2002 and $31 million in 2003 (the same amount as just the single family residential dollar values for (2004). March came in just behind April in 2004 with dollar values totaling $60 million, again the strongest property type being single family residential at $33 million.

November and May were also high in 2004 with $53 million and $51 million, respectively, and worth noting was that the monthly average for 2004 was $45 million, compared to $30 million in 2003 (even with its banner $64 million in September), $23 million in 2002, and $26 million in 2001. The monthly average for 2004, from March through December, fell just shy of 2000's average for the same period even with 2000's sky-high numbers in September ($93 million) and June ($76 million). The average in 2000 ($49 million) was only 6.5% higher than 2004 ($46 million). As far as monthly sales numbers, August was the strongest month in 2004 with 84 total transactions, 33 of which were land sales and 25 of which were single family residential sales. 

September through November also boasted large transaction numbers with 78 in September, 76 in October, and 75 in November. While 2004 was striking on many counts, it finished off the year with a bang-a trait not always common in the industry's annual pattern. Total sales for the last quarter were on par with those from earlier quarters proving that the market was consistently high all year. 

October's dollar values totaled $46 million, November's totaled $53 million and December's totaled $39 million-a quarterly average of $46 million. This is a vast improvement over 2003's last quarter average of $32 million, 2002's last quarter average of $21 million, 2001's last quarter average of $21 million and even 2000's last quarter average of $43 million