February sales were much better than January’s sales
February sales were much better than January’s sales. Dollar amount of sales only down 15% and the number of sales were equal to February 2017. Of note is the brisk sale of condominiums in the Town of Telluride and Town of Mountain Village for the first two months, 13 in the TOT and 10 in TMV. Home sales are a bit slow so far this year; however, March sales and pending sales look really good. See the February Telluride Consulting spread sheet below for more details.
As you probably know, interest rates are moving up a little and are now hovering around 4.75% for a 30-year fixed-rate mortgage. Let’s put this into historical perspective. In 1968 the going rate was 8.5%, in 1981 it was 18.6% and in 1991 it was about 9%. In 2008, just before the crash, the rate was 6% and in November 2012 it hit a low of 3.31%. Over the last 47 years combined, the average rate has been around 8%. Most economists predict a rising interest rate for the next year or two to tweak possible inflation pressures. The bottom line is that the cost of money or a mortgage is probably cheaper now that it will be in the near future.
Where do our buyers come from? Over the last five years, buyers from Texas are by far the largest group with California, Arizona, Florida, New York, Pennsylvania, Illinois, New Jersey, Ohio and Louisiana rounding out the top ten states. Of note, buyers from Texas, especially Houston are the source of three times as many buyers as California which is our second largest source of buyers.
Below, you will find two interesting bar graph charts. Both show the average price of a home sold for the last ten years in the Town of Telluride and the Town of Mountain Village per year. From 2008 through 2017, 242 homes sold in the Town of Telluride and 177 homes sold in the Town of Mountain Village. As you can see from both charts, number of homes sold in the Town of Telluride started to increase significantly in 2012 and in the Town of Mountain Village about 2014. Currently, the number of homes for sale in the Town of Telluride is 34 and the number of homes for sale in the Mountain Village is 60, however about half of those are above $4M. In both markets, homes listed under $3M are the least in supply.