February and year to date real estate data suggest that macroeconomic factors have finally cooled the Telluride real estate frenzy. February and year to date dollar volume is down 49% over 2022 and lagging nearly 20% off the previous 5-year average. While dollar volume and number of sales are both down, February’s average sold price was up 49% over 2022. Year to date, the average sales price has dropped by only 2% over 2022.
During February, 14 properties contracted and year to date, there are 22 properties pending, seven of which are over $5,000,000. Overall, active inventory is up over 2022 but new listings coming to market is below last year’s activity.
Though home prices remain high year-over-year, they are not as in demand as they were in the first half of 2022. How much further home prices drop in 2023 will depend on where mortgage rates and other economic factors go. For specific questions about the market, reach out to me any time.
2023 real estate numbers are off to a slow start. January’s dollar volume is down 17% over the previous 5-year average and down 49% over 2022. With that said, January’s $44.89 million transaction volume is quite strong compared to the pre-covid buying frenzy ($21.73 million in 2019 and $29.96 million in 2018).
Year to date, there is a 19% increase in inventory over 2022, days on market has increased 39%, and the average sales price has dropped 20%. List prices remain strong overall, but there have been several price reductions since the start of the year. Telluride’s real estate market is slowly correcting to match current demand, macro-economic factors, and a return to some pre-pandemic normalcy.
These trends, and stabilizing interest rates, should translate to more opportunities for buyers in 2023, especially those who are well capitalized. Sellers will benefit from stabilizing price growth and strong demand for quality inventory (properties with big views, newer construction, recent remodels, good locations, etc.). Is now a good time to buy or sell? Let’s connect and talk through your personalized options.