I did a quick study this morning of lakefront home prices on Geneva. I compared the 2007 ytd sales figures versus the 2008 ytd figures. The numbers bore out exactly what I expected them to. In 2007, our market had already been softening some through the previous two quarters of 2006. We still saw 16 lakefront sales from 1/1/07 to 10/8/07, with an average sales price of $2,609,162.50. For the sake of this pricing study I didn’t figure market time or list to sale ratios.
In 2008 we found ourselves in a real estate market that was already in its 18th month of softening. That softening has continued throughout 2008, but as you can see from the sales figures, the softening has not affected lakefront prices on Geneva. From 1/1/08 to 10/8/08, we’ve seen 11 lakefront sales, with an average sales price of $2,522,921.73. This number is 3.5% off the 2007 ytd average. BEFORE you jump to the conclusion that the market is off 3.5%, consider that there are two lakefront sales pending right now, one of which is priced at $4.15MM. If the two sales close at $2.1MM and $3.85MM, which is roughly what I’d expect them to close at, we’re looking at an average of $2,592,427.33, or a drop of .64% from the 2007 ytd median. Rough, eh?
All that to say this. The lakefront market on Geneva represents one of the most stable real estate markets available to any homeowner. Historically, very few investments, real estate or otherwise, have beaten out the lakefront market on Geneva in terms of sheer appreciation. And before you read this you were thinking of endangering your hard earned money by buying a home in Tim Allens’ Michigan. Nothing like a syringe in your foot to complete a day at the beach!