What you need to know about today’s real estate market

Homes are selling
Nationally, over 7 million new and existing homes were sold in each of the past 3 years. From a Telluride perspective, the dollar volume of sales dropped slightly from last year’s record, but is still the second highest year ever on record by 17%. Also, the year-to-date number of sales lags behind the record 2005, but only slightly below average over the past five and ten years to date.

Mortgage rates are at historical lows
Mortgage rates have trended down during the last 6 months. As of June 1, 2007, the average 30 year fixed rate is 6.25% and various loan programs for well qualified buyers are as low as 5.875%.

Selection is excellent
With more available properties on the market, finding just the right home has never been easier. In fact, national inventory levels are comparable to 1996, the first year of the current bull market in real estate. Historically, there is a typical average of 60-70 homes on the market in Mountain Village at any given time. As of June 1, 2007, 19 homes have transacted in the village at an average price of $3,636,923.

Demand will continue
One million new households will have formed each year, on average, since 2000. The number of U.S. households is expected to grow by 14.6 million during the next 10 years. Strong household growth, together with the rising income will likely translate into increased demand for housing. Unemployment is under 5%, with the exception of the technology boom in the late 1990’s unemployment rates have not been this low since the 1960S. Locally, with Conde’ Nast’s recent report listing Telluride as the #2 North American Ski Destination and the Peaks Resort and Golden Door Spa in the top 20 most popular ski hotels, Telluride is certainly not getting less popular. This increased popularity combined with increased air access into Telluride and Montrose keeps Telluride in Parallel with National trends.

Home Sales Prices Have Increased
Median existing U.S. home sales prices have increased on average 6.5% each year from 1972 through 2005. According to Telluride Association of Realtors, the average transaction in Telluride in 2006 was up over 8% for all of 2006.

Now is a good time to buy
In fact, it’s a great time to buy in Telluride. Recent research reveals that the average price per square foot of the top five sales of single-family homes in:
Aspen/Snowmass: $1,720/square foot
Teton Village/Jackson Hole: $915/square foot
Whistler: $1,255/square foot
Telluride: $844/square foot

Telluride, the most beautiful place you’d ever want to be. Less crowded than its competitors, renowned popularity, and an overall better value.

Again it’s a great time to buy in telluride – it just makes better sense.