Telluride Real Estate Market Prices, Trends and Forecast 2023


Telluride is in a picturesque box canyon, shadowed by majestic mountains and nature's grandeur. At an elevation of 8,750 feet, the town boasts breathtaking views of sprawling landscapes and neighboring settlements below, setting the stage for an experience unparalleled in charm and beauty. The community has a relaxed ambiance — a place where tranquility meets adventure.

Despite its modest size, spanning just eight blocks by twelve, Telluride is a hub for outdoor enthusiasts with various activities and adventures. This gem is a National Historic Landmark District, preserving its rich history and captivating allure. Its secluded location, a 2.5-hour scenic drive from I-70, only heightens its exclusivity, with a limited number of homes further amplifying its appeal.

Unsurprisingly, the town's unique blend of serenity, beauty, and exclusivity has caught the eyes of many, including celebrities such as Kelly Ripa and Dierks Bentley. Investing in Telluride is embracing a lifestyle steeped in luxury, nature, and history.

A glimpse into Telluride's current housing market

As of August 2023, Telluride's real estate landscape paints a nuanced picture. The median sold price is $6,295,000, translating to $1,699 per square foot. Interestingly, this figure reflects a modest decline of 2.8% from the preceding month.

The town's inventory has seen a subtle uptick, with 47 homes listed for sale in August, slightly increasing from the 40 homes on the market in July. As potential buyers and sellers keep an eye on turnover rates, it's essential to note that homes in Telluride averaged 89 days on the market in August, an increase from the 71-day average of the previous month.

Housing trends in Telluride and beyond

Telluride's real estate momentum in recent times is undeniably impressive. August 2023, for instance, saw the dollar value of sales surge by a remarkable 56%, even though the number of actual sales witnessed a slight dip of 4%. The month was a standout in other respects, too; with sales reaching $117.4 million, it became the first month of the year to surpass the $100 million mark. Setting records is the norm here, with a property in Mountain Village recently fetching a staggering $18.9 million, marking a new benchmark for individual home sales in the area.

Mountain Village is an epicenter of activity, accounting for 44% of sales, while Telluride claimed 34%. The luxury market is undeniably thriving, with 77 out of the 134 sales thus far in the year priced above $2 million. To put that into perspective, these luxury sales represent 89% of the total sales volume for the year.

Drawing a comparison to a decade earlier, the market's trajectory becomes even more evident. In 2013, the average sale price for a single-family home in San Miguel County was $1.3 million. Fast forward to 2023, and this figure has skyrocketed, with the average sales price now resting at $4.69 million within the county. The numbers speak for themselves, echoing the region's rising allure.

The broader Colorado real estate landscape

The broader Colorado housing market offers a rich tapestry of insights that complement the unique trends observed in Telluride. The most recent data shows an inventory of 14,815 active listings in the state, translating to roughly 2.7 months of supply. For those unfamiliar with the term, "months of supply" gauges the number of months it would take to sell all the currently listed homes in the market, given the current sales pace. So, a 2.7-month supply indicates a relatively brisk market, albeit not overwhelmingly fast-paced.

Year over year, this inventory has seen an uptick of 17.4%, suggesting a broader availability of homes. However, the number of new listings has decreased by 9.9% compared to the previous year, tallying up to 8,111. Sold listings, too, have experienced a dip, declining 15.7% from last year, with a total of 6,082 homes sold.

Price trends remain on an upward trajectory. The median sales price for a home in Colorado now stands at $579,999, a 2.3% increase from the preceding year. As for sellers getting what they ask for, they're in a favorable position; the percentage of list price received hovers around an impressive 99%, mirroring the rate from the previous year.

However, properties are taking a bit longer to sell, with homes spending an average of 41 days on the market, a duration that's up by 32.3% compared to the year before. This increase suggests buyers might take longer to make decisions or have a broader range of options. Whatever the case, Colorado's real estate remains dynamic and worthy of prospective investors and sellers.

Navigating investments in Colorado

Colorado's housing market showcases an intriguing blend of rental and owner-occupied properties. Remarkably, 34% of homes in the state function as rentals. Since 2016, there has been a noticeable shift towards owner-occupied homes, which saw a rise from 62% that year. Yet, this trend hasn't touched the peak witnessed between 2003-2005, when a robust 71% of homes were owner-occupied.

As potential investors and homeowners assess the financial landscape, factor in the broader economic indicators. For instance, the Federal Reserve has set an inflation target of 2%. Only upon achieving this will they contemplate a reduction in interest rates. The Mortgage Bankers Association offers a glimpse into the near future, predicting that mortgage rates might descend below the 6% threshold in 2024. However, dipping below 5% appears unlikely, suggesting a certain baseline for borrowing costs.

Yet, the property market's innate resilience and potential for growth often sway investment decisions. Historically, home values have shown a tendency to appreciate. The brief dip in national home values during 2008 and 2009 was merely a hiccup, with values rebounding a year later. A promising narrative unfolds when zeroing in on Colorado's trends against the national backdrop: the state's home values have been rising since 2011, more than doubling in value over this period.

Given this historical performance and the current economic indicators, one could argue that now is a prime time for buyers and sellers. Buyers might benefit from the impending slight drop in interest rates, while sellers can capitalize on the consistent appreciation of home values. It's a market that, while not without its challenges, presents myriad opportunities for those equipped with the right information and strategic foresight.

Unraveling Telluride's real estate

Telluride embodies nature's grandeur, historic charm, and exclusive living. Its unique real estate dynamics, set against the broader backdrop of Colorado's market trends, present many opportunities. With housing prices, interest rates, and the owner-renter balance coming into play, potential investors and sellers can make informed decisions. Amidst these complex dynamics, the value of homes consistently appreciates, hinting at a robust foundation for current and future investments.

Your guide to Telluride

Ryan Yaseen of Telluride Properties is a native of Southwest Colorado whose roots trace back six generations in the region. His profound local knowledge is complemented by an unwavering commitment to high-quality service, ensuring every client's needs are met with utmost focus and meticulous attention to detail. In a market as dynamic as Telluride's, having Ryan by your side means securing the best possible price, irrespective of prevailing market conditions. Investing in Telluride? Make sure you're partnered with someone who truly understands its heartbeat.

*Header photo courtesy of Shutterstock




Work With Ryan

Pairing his decade of experience in service and hospitality with his local upbringing and knowledge of the San Juan Mountains, Ryan offers outstanding support as a Buyer or Sellers agent with a focus on the Telluride region.