August 2025 Telluride Market Report

The San Miguel County real estate market recorded $108.9 million in sales volume across 43 transactions in August 2025, representing a 10% decline in dollar volume and a 7% drop in sales count compared to August 2024.

Single-family homes led the market with 18 sales totaling $77.6 million, essentially flat year-over-year after adjusting for the Hood Park outlier ($40million Mountain Village record sale). Condominiums and townhomes generated $23.4 million across 15 closings, down 28% from last August, with softness in the $2M–$4M segment. Vacant land sales slowed significantly, with only five transactions totaling $4.5 million, the weakest August since 2019, while the commercial sector logged three sales at $3.4 million, slightly stronger than last year but below historical averages.

Year-to-date performance highlights broader market cooling. Through August, the county has closed 289 transactions totaling $510.5 million, a 25% decline in dollar volume and 2% fewer sales than the same period in 2024. Activity is down across all major segments: single-family homes (–22%), condos/townhomes (–27%), and land (–35%).

In the region, Telluride and Mountain Village accounted for over 75% of August’s volume, bolstered by luxury property sales. Telluride posted 11 closings (+22%) but dollar volume fell 39% to $26.7M, while Mountain Village saw 14 sales (–7%) but volume rose 62% to $66.5M, primarily due to the Hood Park sale. In contrast, the remainder of the county recorded 18 sales (–18%) with a steep 57% drop in volume to $15.7M.

The luxury market ($5M+) slowed, with only five closings in August (–44% YoY) and year-to-date sales totaling $232.9M (–44% YoY). At the same time, average prices per square foot declined across most markets: Telluride single-family homes fell to $2,100/sf (–36% YTD), Mountain Village homes to $1,597/sf (–13% YTD), and the broader county to –27% YTD. The one exception was Mountain Village condos, which showed resilience at $1,538/sf, up from $1,321 in 2024.

Looking ahead, buyer sentiment remains cautious, and inventory is rising for the first time in several years.  Anticipated interest rate cuts, coupled with a handful of buying opportunities and motivated sellers will create opportunities for savvy buyers. Seasonal activity in the fall and early winter months will provide further clarity, particularly as sellers adjust pricing expectations to align with current market realities.

At the same time, it’s important to note that roughly $300 million is currently in escrow between the High Line and Four Seasons projects. When factoring in absorption rates against last year and the five-year average, these contracts materially shift the forecast. The profile of these buyers—affluent individuals purchasing in the $4M–$30M range—underscores that demand exists, but availability of finished, high-end inventory has been limited. Many of these buyers likely would have purchased alternative properties had they been available, signaling that cash-ready buyers remain on the sidelines awaiting the right product. As a result, the market feels bifurcated: new, turnkey luxury properties capture attention quickly, while older products are seeing increased price reductions as buyers hold out for quality and convenience.

In summary, San Miguel County’s real estate market continues to demonstrate a bifurcated dynamic—isolated, record-setting luxury transactions elevate headline figures, while mid-market activity reflects softer demand and pricing pressure. However, with approximately $300 million in escrow tied to major projects and affluent buyers actively waiting for the right opportunities, the outlook is more nuanced. Turnkey, high-end properties remain highly sought after, while older inventory faces greater pricing adjustments. Together, these factors suggest that while near-term performance reflects a cooling market, longer-term fundamentals remain underpinned by strong buyer capacity and demand for quality products.

Please don’t hesitate to reach out with any questions or for more detailed market insights.

Best regards,
Ken

Ken

(970) 708-5601

ken@grodbergrealestate.com

View the Full August 2025 Telluride Real Estate Market Report