Entry Level Vacation Condominium 2016 Market Update

Entry Level Vacation Condominium 2016 Market Update

Entry Level Vacation Condominium 2016 Market Update

That’s a clunky headline, to be certain. But clunky it must be, because there’s really no other way to describe this segment of our market. It isn’t Abbey Springs. It isn’t Geneva National (those two updates will be this coming Friday and then Monday). It’s just the secondary vacation home condominium markets that cater to the secondary homeowner. The sorts of folks who buy into these developments are those who seek a piece of this scene, but they wish to join for a fraction of the membership fee required by the other market segments.  When swimming in the lake on a hot July afternoon, there is no distinction between the lakefront owner who paid $5MM and the Abbey Hill condo owner who paid $200k.

I consider this market to include the following condo associations: Willabay Shores, Bayside Pointe, Abbey Villas, and Abbey Hill. There are other such condominiums, but these are the developments that I find most appealing for the vacation home buyer seeking to spend somewhere around $200k.  These are the associations that I would be considering if I were a buyer in that range. We know that 2016 was a year with incredibly low interest rates and a mostly stable (excepting the first 60 days of the year) stock market. Because of those conditions, this entry level condo market should have had a very solid 2016. And that’s exactly what happened.

Bayside Pointe is in Williams Bay. It’s nice, and it’s walking distance to the lake, and the units have small attached garages and there’s a swimming pool. You can also walk to Bell’s store, though I’ve never heard that written in a description as an amenity that carries any particular weight.  Five units sold here last year, with closings at $185k on the low end and $260k on the high end.  There wasn’t a single sale in this complex for 2015 (per MLS), and as of today there is just one active ($184,900). While I generally find myself concerned about inventory at the higher ends of our market, the best possible scenario for current owners in these sorts of associations is to see very little inventory.  These markets exist in a vacuum of sorts, as sales at Bayside Pointe really only matter to Bayside Pointe, just as Willabay sales only matter to Willabay. There is little crossover here.  The inventory is now low, which is difficult for buyers but fantastic for current owners.

Willabay Shores is just down the road, closer to the lake. It’s walking distance to the water, and it’s walking distance to the little stream that pushes through the Williams Bay beach where I first discovered Snapping Turtles. Willabay sold 11 units in 2016, nearly double the 2015 production of six. Currently, there are just three active units per the MLS, which again, creates a fantastic climate for current owners. In all, a remarkable 2016 for Willabay. Prices ranged from $130k to $217k, which is the typical range here, though some units with slight lake views can push upwards of $275k.

In Fontana, Abbey Hill has long been one of my favorites. It lacks the proximity to the lake that these other developments can claim, but the architecture is unique and I find it to be rather engaging. There were two sales in 2016, down from four total in 2015. But this isn’t a problem, it’s just a function of lower inventory. Currently, not a single Abbey Hill unit is offered for sale on our MLS. Again, that’s not wonderful news for buyers looking to consider Abbey Hill,  but it is the perfect climate for existing owners to discover some appreciation.  Don’t forget about Abbey Hill- if you’re a buyer in the $200k range seeking some sort of Lake Geneva vacation home, you should be asking me about Abbey Hill.

If you like Fontana but need to be closer to the scene, then the Abbey Villas are for you. The development doesn’t allow dogs, so that’s tough on some people, but the development is close to the beach and you can walk to your morning coffee, and that’s something.  10 units sold here in 2016, with closings occurring from $165k to $255k. No harbor front units sold in 2016. The 2015 volume stalled at six total sales, so 2016 is a win no matter how you look at it. Today, the inventory is following the same pattern as our other market participants, with just two units available in the MLS, and one more pending.  The Abbey has the highest association dues of any of these properties, so that’s something to consider if you’re looking to vacation on a relative budget.

Vicki Hansen is my assistant who handles all of these associations for me, and if you’re a buyer or a seller, there’s no better choice for representation.  Buyers tend to shy away from Lake Geneva if they find their budget doesn’t match up with our lofty lakefront prices, but those who wish to find themselves part of our scene for $200k or so would do well to discover these four associations. Expect 2017 to be a solid year, but as with our current prediction theme, if inventory doesn’t build then we’ll see more appreciation this year, and less overall volume.

 

Image courtesy Matt Mason Photography, a Lake Geneva wedding photographer. 

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