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2005 Boasts Largest Total Dollar Volume on Record
with $725M
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 Dollar Volume # of Sales
1996 $174 million 626
1997 $213 million 527
1998 $257 million 597
1999 $415 million 925
2000 $546 million 965
2001 $431 million 722
2002 $319 million 666
2003 $433 million 748
2004 $617 million 855
2005 $725 million 884
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.
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