Market News

housing market may have begun to recover,

the number of people who signed contracts to

purchase homes increased for the third month

in a row.” The piece included data from the

National Association of Realtors, which said its

pending home sales index rose 6.7% from

March (84.6) to April (90.3), and Joshua

Shapiro, an economist with MFR, the

Manhattan global

economic consulting

firm, was quoted:

“Clearly, within the

next couple of

months there’s going

to be a decent

increase in actual

homes sales.” On

another note, the

widely recognized

financial analyst,

Mad Money’s Jim

Cramer, predicted

back in September 2008 that the housing market

would bottom in the third quarter of 2009

(read more at: http://skiresortmarkets.com).

In examining TAR’s figures, numbers were

slow dollar-wise and transaction-wise , but

steady during the first six months of the year.

Sales for commercial properties totaled $4 million

over 10 transactions; condominiums, $19

million over 18 transactions; fractionals, $2.5

million over 27 transactions; land, $15 million

over 19 transactions; and residential, $41 million

over 32 transactions.

Fractional units (representing the second

highest sales numbers) were particularly noteworthy

in these financial times considering

they tend to be less expensive, owners pay

only for what they might use, and highly-valued

amenities are part of the package.

According to a report published by the

global consulting and services organization

HVS, titled “Resort Real Estate: Preparing for

Recovery,” and written by Andrew Cohan,

In a nutshell, Telluride is getting through it

like everyone else. On account of the current

state of the economy, or rather where it was

during the first two quarters of 2009, real

estate activity slowed considerably. After a

string of high marks between 2000 and 2007,

with the latter reaching record heights by

year’s end ($710 million in total dollar volume),

numbers changed significantly in 2008

and thus far in 2009. According to data compiled

by the Telluride Association of Realtors

(TAR), overall figures between January and

June 2009 were $80 million in total dollar

volume, distributed over 105 total transactions.

This is 54% lower than the first two

quarters of 2008, which totaled $174 million

and noticeably lower than earlier in the

decade when property values were less. TAR’s

figures encompass the greater Telluride

region, including San Miguel County, as well

as occasional out-of-county sales (i.e.

Montrose, Ridgway, and other communities).

But with a little optimism and acknowledgement

that ebbs and flows are the nature

of the real estate beast (albeit this ebb is a tad

more drastic), it’s still possible to find a silver

lining behind this dark cloud.

First of all, resort economies, once largely

sellers’ markets, are now giving buyers a

chance. With ample inventory to choose from

and low interest rates, it’s a good time to make

a purchase. Secondly, Telluride has endured

negative market effects now for roughly 18

fractional ownership might be one of the

first elements of the market to come back.

“Resort real estate buyers will be more

focused on value, especially value through

use. Buyers will either want to use the

resort property as often as possible or will

only want to pay for what they believe will

be their typical level of use by buying fractional

real estate or by joining private residence

clubs.”

As for monthly breakdowns in the

Telluride region during the first half of the

year, they were as follows:

Great Recession…is most likely over.

Home sales, while still far below the levels

of a year ago, have risen for three straight

months—a first since 2004. The stock market

has rallied 44 percent since March…”

As for Jim Cramer, he likely has as

many foes as fans, but it would be comforting,

nonetheless, if his prediction is

correct. Perhaps the first two quarters of

the year can be chalked up as part of the

trip toward bottom, and the worst might

in fact be over.