After a $617 million precedent-setting year in 2004, the real estate community hoped and even suspected that it could potentially happen again in 2005. But with $725 million in total dollar volume for 2005, according to figures compiled by Judi Kiernan of Telluride Consulting, the market surpassed all expectations, topping 2004 by $108 million. In addition to the year-end total dollar volume for 2005, total number of sales was 884.

An Overview

At a quick glance, 2005’s dollar volume of $725 million exceeded the previous record in 2004 of $617 million by 17%. Total number of sales increased 3% to 884 in 2005 from 855 in 2004. Furthermore, Mountain Village sales alone jumped 21% in dollar volume between the two years, Telluride sales rose 11%, and sales for the remainder of the county rose 17%. Over the last 10 years, the local market has shown considerable appreciation. Dollar volume totals from 1996 and 2005 reveal an overall increase of 317% from $174 million in 1996. As for number of sales, they also increased solidly by 41% between 1996 and 2005.

Year to Date Sales

TREC sales 2006 YTD - $193,944,383

Average Price

The average price of a real estate transaction in 2005 was $820,000, the highest average price in the last ten years and $99,000 higher than 2004’s $720,000. While 1999 and 2000 witnessed more transactions than any other years (including 2005), the average price for property in 1999 was $449,000 and in 2000 it was $566,000, 45% and 17% less, respectively, than 2005.

Property Types

When examining a breakdown of property types in the area, county vacant residential land accounted for the largest percentage of dollar volume at $107 million, and showed a healthy gain over 2004’s $80 million, a 34% increase.

Another segment showing large gains was Mountain Village condominiums, which boasted a total dollar volume of $105 million, a 33% rise from $79 million in 2004, the year commonly referred to as “The Year of the Condo” at the time. This category was also the third largest in regard to percentage of total dollar volume for the year.

Mountain Village single-family homes also accounted for a large portion of sales with a total dollar volume of $106 million, the second largest for 2005. While this isn’t a drastic jump from 2004’s $104 million, it shows a steady 2% increase.

October 2005

With regard to monthly totals for 2005, October was the highest grossing month of the year with $98 million in total dollar volume. This amount is also the highest monthly dollar volume in recent history as no other month in the past 10 years has come close to such a remarkable figure.

Contributing to the $98 million total was $29 million in dollar volume in Mountain Village’s non-residential land sales, distributed over three transactions — with one sale closing at $25 million.

Also contributing was $27 million in county vacant residential land sales, which included a 476-acre parcel on Wilson Mesa for $13.5 million. In comparison to October 2004, which had a total dollar volume of $73 million, there was a 34% increase between the two years. Other notable months in 2005 were September at $75 million, April at $71 million, May at $65 million and November at $61 million.

Past and Future

The regional real estate market has a solid history with numbers maintaining an overall consistent level of appreciation. In the last 10 years, San Miguel County real estate sales have witnessed a compound annual growth rate of 17% in dollar volume and 4% in number of sales. Moreover, throughout the past 20 years, values have also risen steadily with a compound annual growth rate of 14% in dollar volume and 4% in number of sales. Even through the few isolated periods of minimal appreciation, properties have held their value and then made a solid come-back. For example, after 2002 and the days when the entire country was reeling from 9/11, the regional market quickly recovered and was up in total dollar volume by 36% in 2003. On a larger scale, in the three short years since 2002, sales have witnessed a 127% increase from $319 million in 2002 to $725 million in 2005. Heading into 2006, market trends continue their upswing, and another record-breaking year may be on the horizon.

Market Reports

• Market Update, January 2006
• First Quarter Statistics, 2006
• Homes
• Condos
• Lots
• Out of Town Lots
• More Market Updates and Statistics