2009 was a forgettable year for the Geneva lakefront condo market. In 2006, we had 10 lakefront condominium sales. In 2009, only 4 lakefront units changed hands. The volume decline is more significant than the decline of the broader market, but as bad as it sounds, four sales isn’t all that horrendous. Consider the lakefront condo market at Lake Geneva only has around 200 units total, and active available inventory hovered around 10 units for most of the year. It’s a small market, so a low sales tally isn’t as bad as it would be for a more broadly defined market. The lakefront condo has fallen out of favor to some degree over the past several years, but I attribute that more to rising prices than I do a change in buyer behavior. With a perceived decline in lakefront condo prices in the 15%-20% range, several of the units that were once too expensive have become affordable again.
Consider the Fontana Shores three bedroom unit that I sold this past fall. That unit was probably worth as much as $600k at one point in the last several years, but we ended up selling the lakefront retreat to a savvy buyer for just $455k. Condo prices have generally fallen back to 2003 price levels, as has much of our vacation home market here. Some exceptions exist, primarily in fantastically improved properties, or properties in rare locations. The lakefront condominiums that sold on Geneva during the past year were in Fontana Shores, Vista Del Lago, and Geneva Towers. I generally don’t think of Geneva Towers (big high rise downtown Lake Geneva) as a lakefront building, but it has terrific views and tremendous proximity to the water, so we’ll throw it a bone and include it in the discussion.
Current lakefront condo inventory is quite limited, with offerings available only at Bay Shore, Fontana Shores, Vista Del Lago, Geneva Towers, East Bank, and The Condo at the Old Boatyard. I’m personally going to be adding a new lakefront condo to the mix later this month, and that unit at Vista Del Lago is sure to impress you in just about every way. If we can add affordable inventory in Bay Colony or Bay Colony South, those units will probably be well received by the market this year. The same is true for the Fontana Club. The lakefront condominium is by far the cheapest way to enjoy lakefront living on Geneva Lake. If you’re looking for a lakeview, a boatslip, and value proximity to the water, then a lakefront condo may be just the ticket. Considering you can obtain a two bedroom unit with the aforementioned attributes in the mid $400k’s, and a three bedroom in the upper $500k’s, it’s a far cry from the $1.25MM entry price for a single family lakefront home.
Condominiums have been overlooked in recent years, as there seems to be a slight trend toward single family vacation homes over condominiums. That trend probably won’t continue, as buyers recognize the value of lakefront living, even if they only own from the drywall in. You might be surprised to learn that I have more total transaction sides involving Geneva lakefront condominiums than any other agent in the State of Wisconsin since 1999. I was pretty much the condo king for the 2000’s, and look to continue to condominium dominance throughout this new decade. As a result of that glut of sales activity over the past ten years, I pretty much know all there is to know about every lakefront condo building on the water, including the obvious pros, and the much more subtle cons. Every building has a story, and I don’t think there’s any other agent who can better provide you with the narrative.