Realtors are asked this question on a daily basis and the honest answer is:  “it depends.”  The real estate market is segmented rather than homogeneous, it is difficult to generalize, however, one trend does seem clear.  Properties that might be labeled discretionary are being affected the most.  The luxury market and vacation/second homes have taken a bit of a hit.  I was recently in Denver at the Realtor Land Institute meeting with brokers from all over the state of Colorado and surrounding states.  The message is the same:  that the vacation homes and ranch sales have reflected reductions from their original prices. 

Although we have had some sales this year, many have been have been sales of foreclosed or distressed properties some resulting in short sales.  This summer we are starting to see quite few sales of non-distressed properties, although they are heavily discounted, giving us some evidence that the market is starting to stabilize.

Of course, the recovery of all segments of this market will ultimately depend on the stabilization of the job market.

On the Bright Side!

Year to Date the San Miguel County Sales Tax is up 5.86% compared to 2009.

My wife Peggy, who is the San Miguel County Clerk and Recorder, reports that the revenues from her department are up 18% from last year, with much of the revenue coming in through the motor vehicle department.  Revenue numbers are hovering close to 2008 numbers, which is good to see.

Scott McQuade from the Telluride Visitor’s Center reports that the summer lodging numbers look very solid.  Scott shows that the winter total occupancy rate was up 21.1% from 2009 and that bookings look strong through the fall of 2010. 

We can tell you that the festivals have been busy and even on non-festival days, town is bustling!  Please feel free to call or email me if you have any questions regarding the Telluride real estate market and your property. 

Have a wonderful summer! 

Jim