Currently, the condominium market inside the Town of Telluride would be described as “balanced”. Over the previous 12 months, there have a been a total of 82 condo closings in town, while there are 15 contracts pending as of this typing. With only 55 condo units currently active, that equates to an absorption rate of approximately 7 months. That might sound like a a long time to people more familiar with urban markets, and the numbers those markets exhibit relative to ‘days active’, but a 7-month absorption rate in any market category in our remote mountain burg is a sure sign of strength/balance.
The project collectively known as the Telluride Transfer - 12 luxurious units spread across four separate buildings on portions of two town blocks - is one of the few sources of new inventory coming to market on the immediate horizon. Three of the 55 active condos in Town are from this project so we know up to an additional nine more will ultimately be available. It is a sensational concept in an unbeatable location, that was imagined and conceived by a world-class design team, so we are quite confident of its ultimate success. When complete, it will be some time before another 12-unit development occurs inside town borders.
Lots of profit taking has occurred in the equity markets over the past two weeks. Often those funds find their way into hard assets like resort real estate - a terrific hedge against inflation. And you are not going to create any family memories cuddling up in front of a diversified bond fund…so think about a new home in Telluride.