|
Greetings,
Gross sales for the Telluride region (San Miguel County) in 2022 was $1.1 billion. That was down 22% from 2021 but up in average sales price by 26+%. The number of sales in 2022 was 582, down from 944 in 2021. While the great urban exodus still affected the Telluride regional market in the first half of 2022, the second half of the year sales slowed down due to two major issues: the lack of inventory and the fear of the dropping stock market. To take a more in-depth look at December’s market report, CLICK HERE.
Two market niches that have noticeable increases in inventory are Telluride and Mountain Village condominiums. Also, the number of homes on the market in the Mountain Village on December 31, 2022 was seven. As of January 31st this year, there are now 17 homes for sale in Mountain Village. Total inventory in the MLS for San Miguel County properties was 222 listings on January 31st this year, about 10% more than on 12/31/22. READ MORE HERE.
Looking forward to 2023, buyers now have to be concerned not only about an imminent recession but also a lack of available general contractors in our region. Most regional contractors are booked out two to three years. The Harvey Team is predicting the total number of sales in the county in 2023 to be 450 to 475 and the dollar amount of sales to be between $700 million and $800 million. Please know that with interest rates continuing to rise and an up and down stock market, predicting the real estate market for the Telluride region in 2023 can only be a wild guess. Sellers still think it’s 2021 and the buyers think it’s mid-2023; hence, the difficulty of coming to price agreement.
National Perspective: The National Association of Home Builders and the National Association of REALTORS® both think the home market is about 5.5 million homes short of demand and it will take about ten years to catch up on that needed supply. With mortgage rates jumping from less than 3% in the fall of 2021 to above 6% now, that essentially disqualified 20 million households or about 40% of the buyer pool. For 2023, the market experts predict a decrease in national home sales anywhere from about 7% to 17% by the year end. Even the country’s top real estate economists have a wide range of predictions. The wealthy won’t be as affected by interest rates but they will be more cautious with big expenditures according to the luxury niche prognosticators.
United Van Lines release of the company’s 46th Annual National Movers Study shows that Americans continue to move to lower-density areas for lifestyle preferences, retirement or wanting to be closer to family. Vermont saw the highest inbound migration and New Jersey had the most outbound movers. Basically, Americans are moving from more expensive cities to lower density and more affordable regions. In 2022, Colorado’s inbound and outbound movers were the most balanced in the last ten years. While almost everyone knows that rents went up in 2020-2021, rents were actually down in December in 90 of the nation's 100 largest cities in the United States.
Colorado Legislation: Proposition 121 passed last November and the state income tax rate was lowered to 4.4% down from 4.55%. This will positively affect many second homeowners who rent their properties.
Aspen/Snowmass: The dollar amount of sales was $2.52 billion with 376 closed sales in 2022. This was a decline of 31% in the dollar amount of sales with 51% fewer sales transactions. Like other Colorado resort sales, the second half of 2022 was down 40% from the first half of the year. Note: This sales information is only for the Aspen and Snowmass market areas.
Breckenridge: While this market was also down in the dollar amount of sales and number of sales in 2022, it should be noted that the price of a single-family home in Summit County (Breckenridge area) was up 77% in the last five years and average price of a townhome/condominium was up 45% for the same period of time.
Steamboat Springs: Routt County dollar amount of sales was down 44% in December with the number of sales being down 19%. Total dollar amount of sales for 2022 was about $1.5 billion with 1,581 being the number of sales. The average residential sales price was $1,374,925 which is almost double the average home price sale in 2018.
Incline Village/Crystal Bay: Total dollar amount of sales was down 45% in 2022. They have had so much snow that it was hard to show real estate in December and January this year. Lake Tahoe's water level has risen almost a foot and is now above the natural rim.
Canada Real Estate: Big news! As of January 1, 2023 non-Canadians cannot purchase residential property for a period of two years. Historically, Vancouver and Toronto have had a lot of foreign buyers, some from the U.S. and western Europe for Toronto with Vancouver having 30% to 35% of its buyers from Asia.
This month’s Visual Capitalist: In this visualization, the Visual Capitalist ranks the top 50 websites that receive the most internet traffic today, from Google to CNN. READ MORE: https://www.visualcapitalist.com/top-50-most-visited-websites/
Ten Fun Facts Mostly About Real Estate:
- A recent survey finds that 28 million Americans are in the market for a house this year, but can only afford about $270,000 for a single-family house.
- About 30% of U.S. homebuyers in the last three years regret their purchase, feeling like they overpaid.
- Income of $100,000 per year only allows a buyer to purchase 32% of the current homes on the market in the entire U.S.
- There were more than 11,000 victims of real estate cybercrimes in 2021, resulting in total losses of $350.3 million.
- McAllen, Texas homeowners have lived in their homes the longest of any U.S city since they purchased it...10 years and 3 months.
- Colorado Springs homeowners have the shortest time for living in their home before they sell again...4 years and 9 months.
- Construction costs for new hotels are up 25% to 30% for the last three years causing many international hoteliers to cancel building.
- Colorado has two job openings for every available worker as of January 1st of 2023.
- The U.S. auto industry sales for 2022 are down to 13.7 million vehicles, the lowest figure in more than a decade.
- The first text message was sent on 12/3/1992. It took until 2008 for one trillion text messages to be sent in one year in the U.S. They have leveled off to about two trillion in one year in the U.S. in 2021.That’s an average of 6,000 texts per person in the U.S. Whew, my fingers are tired.
Personal Fun Story: I was having a beer with a buddy of mine in the J-Bar in the Hotel Jerome in Aspen in the summer of 1975, when Jack Nicholson rode a horse into the bar and tied it up to the brass hand rail. "One Flew Over The Cuckoo’s Nest" had been out a few months earlier and Jack was flying high. He bought drinks for everyone. That’s when I knew I wanted to live in a Colorado mountain resort community!
Question of the Month: Can I, as a seller, include my furniture in the purchase contract for free to the buyer if I just want to leave it in my home?
Answer: It depends. If the personal property like furniture has significant value, then the buyer’s lender won’t want it included in the purchase price. Mortgage lenders only want to loan on real estate, not valuable furniture, art, furnishings, etc. You need to assign a value for all personal property that you are selling to the buyer outside of the real estate purchase contract. That may change the sales price in the contract. Consult with your lender and possibly an attorney as well.
Quoted in the Press: We are most grateful for having our market information quoted in the Wall Street Journal, the Denver Post, the Colorado Sun newspaper, the Telluride Daily Planet, The Aspen Times newspaper and numerous other local newspapers all across Colorado. Thank you!
As always, thank you for taking time to read the Tellugram. If you have any questions as a seller, buyer or just curious reader, we’ll do our best to give you a straightforward answer. Contact us at George@TheHarveyTeam.net or on George’s cell phone number 970-729-0111.
Quote: "When you are out of quality, your out of business" – Unknown
Best Wishes,
George Harvey, Jr.
| 
