The Dirt on Real Estate in the Telluride

By Eileen Burns Andrews
Telluride Style Magazine, Winter 2008

Back in the 1880's, the mining industry was booming in Telluride and close to 3,000 people flocked to the San Juan's with dreams of striking it rich. Real estate also began its boom in Telluride back then, with lots selling for one dollar. Yes, one dollar would buy you a piece of land to build a specialty shop, bank, tavern hall or beautiful Victorian home on. In the 1920's, mining became virtually obsolete, town dwindled to a mere 500 folks and real estate went bust. It was not until the 1970's, with the transformation of the area into a world-class ski resort, that real estate and development emerged again, to play a key role in the growth of the local economy.

Today, instead of mining for silver, many people strive for the prospect of owning an incredible piece of the new dream, namely real estate. According to Judi Kiernan, founder of Telluride Consulting, "When we began tracking the county's real estate activity in 1985, it was clear that the market was already beginning to build momentum." As town increased in population and development, the real estate market paralleled with steady sales and rising dollar values. A peak year occurred in 2000 when San Miguel County saw 965 real estate sales totaling $5.642 million.1 A flat period hit in 2002, with fewer sales, as a result of the 9/11 tragedy and a bit of fallout from the dot com bust. Then in 2005, another local market record transpired, with 883 transactions taking place totaling $724.5 million.2 When asked if there has been a recent decline, Kiernan stated, "The 2006 market recorded an overall decline in dollar volume and number of sales for all of the County, although sales within the Town of Telluride increased in both measures." Through September of 2007, a record-breaking $583.9 million in sales have been recorded (6% above the same period in 2006.

As buyers and sellers around the country try to deal with the effects of the recent mortgage market disorder and fall in the housing sector, Telluride's real estate market seems to be holding steady. According to Matt Hintermeister, President of Telluride Association of Realtors (TAR), "Unlike many markets in the nation, the Telluride market is much more secure because we have an extremely small market with limited inventory which stops things from getting out of control." That said, owning in this breathtaking valley is pricey and varies greatly. Known as a luxury or boutique-type market, through September of 2007, a condo in Town is averaging nearly $880,000 and a home in Mountain Village over $3,700,000. Although many living here cannot afford these prices, there are options for locals such as TAR's First Time Homebuyer's Assistance Fund program which offers financial assists to residents when purchasing a home. There is also a small deed-restricted segment of affordable housing in the county, primarily condos, averaging around $350,000.

Looking ahead, according to data released monthly by Telluride Consulting, 2007 regional real estate sales have been record breaking and San Miguel County can look forward to continued strong real estate sales and healthy appreciation in the upcoming year.

1, 2. A Market Analysis of Real Estate in the Telluride Region 1985 - 2006, Telluride Consulting

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