After setting the world on fire throughout the first nine months of 2009, Abbey Springs appears to have settled down a bit. As of today, there are 26 active properties in Abbey Springs, with not a single property under contract according to the MLS. That doesn’t mean there aren’t any pending deals, it just means there probably aren’t any pending sales. WIth 15 sales YTD in the development, we’ve already put to rest the painful memories of a miserable 2008 wherein only 6 units changed hands all year. With 15 sales so far in 2009, it’s acceptable for the association to have a breather for a while.
Even with the flurry of sales activity this year, the price of admission has dropped considerably for Abbey Springs. Consider that right now you can purchase a one bedroom condo for an asking price of $174,900 (I don’t want you to pay asking price, I’m not that sort of agent (Sandra Rinomato, I’m looking condescendingly in your direction). The prices in Abbey Springs appear to have dropped roughly 15% across the board from the market highs, which is pretty much in line with the reductions in most of our resort market here. Even though many properties have dropped in price, there are still properties appreciating and bucking the trend. And not every property is selling for a discount. There was a single family home sale in Abbey Springs this summer for $860k. The asking price was $859,900. Must have been another buyer to help drive the price up.
The big question for Abbey Springs right now is, why? Why is the development bucking the trend of the overall market? Why is Geneva National stuck in a sales rut while Abbey Springs charges ahead? Why are the lower dues at GN cited as a reason for slow volume, yet the higher dues at Abbey Springs barely register in the minds of would be buyers? Some might have you believe that the reason behind the resurgence of Abbey Springs is the new and improved facilities. The new grill room, the new swimming pool, the updated buildings and grounds. I don’t necessarily agree with that simple explanation, but will gladly admit that the improvements have led to an increase in buyer traffic and demand. I don’t think that’s really the driving factor, but it’s definitely a help.
I think the real reason Abbey Springs has fared so well this year is the combination of a couple facts. First off, prices have dropped roughly 15%. This isn’t a cosmic reduction, but it’s still relative. The decent drop in prices, combined with the addition of the new recreational facilities has most definitely been a powerful influence over buyers, but I think it goes deeper. The price range in Abbey Springs this year has been largely confined between $200k and $800k. That’s a price range that buyers are active in, and Abbey Springs caters directly to that targeted value range. But it’s more than just demographics and pricing too. Abbey Springs has lakefront on Geneva Lake. Geneva National does not. Abbey Springs has a sand beach on the water, and a marina, Geneva National does not. Abbey Springs has an indoor pool, Geneva National does not. Abbey Springs has a beautiful golf course, Geneva National has three.
You see, it’s not just one amenity or condition that’s moving this market, it’s the perfect storm of all of these things that has created the pull. Absent of one of the defining factors of this development, Abbey Springs may not have fared so well. Take away the improved infastructure, does it sell as well? I doubt it. Absent the lakefront access, does this development still pull? No way. What if the entry level price point was closer to $400k instead of $200k? The market would have probably been dead this year (just ask the folks at the Cliffs how that higher price point is doing in 2009).
Abbey Springs in 2009 has benefited from a confluence of factors, and in this case, the sum is indeed greater than the individual components. While the market has moved, there is little doubt that deals still exist, so there’s no reason to think you’ve “missed out” on the lower prices that were prevalent this year. I enjoy showing Abbey Springs, so if you’re up for a tour, you know I’m game.