This summer, the activity in the single family market has been well documented. In fact, it’s been documented to death. Bludgeoned with exclamation marks. Cause of death? Overuse of hyperbole. But still, the market is hot and so we recognize that. We’re grateful for it. The thing is, each market is connected, each segment joined to the price range above and below it. Each style of property hinging somewhat on the performance and inventory in the adjacent market created by a different type of property. If the vacation home segment of $250k single family homes is hot and low on inventory, then the vacation condo market in the same price range should be equally as hot, right?
The vacation condominium market is dominated here by the two large players- Abbey Springs and Geneva National. But these resort developments are so large they actually operate as their own individual markets, with little carry over from the single family market and other smaller condo developments. Strange as it may be, a $650k house in Geneva National does not benefit from the strength of the $650k lake access market. When I was a seller in GN I would always find reason to complain about this lack of correlation. It felt unfair, but I learned to accept it and have only harbored resentment and bitterness ever since.
The two condo markets that would most directly benefit from the entry level lake access activity are the Abbey Villas and Abbey Hill. Both are in Fontana, where the heart of our lake access market resides. This morning there are only two single family homes with lake access priced below $300k in Fontana. That’s an incredible drought of inventory, and at this date in July it’s unlikely the inventory deficit is corrected before the year ends. If the single family market in Fontana is starved of inventory, then the two condo markets that feature units under $300k should be hot, right?
Well, sort of. Abbey Hill has two available condo units this morning priced from $225-255k. There haven’t been any sales in Abbey Hill for 2017 (MLS), following a 2016 wherein two units closed. Abbey Hill, for the uninitiated, is up the road a mile or so from the Fontana beach. It’s an older condo complex that won’t win any particular architecture awards for the overall complex, but the individual units are quite interesting. I’ve long appreciated the Abbey Hill condominiums for their character, and I don’t expect that fondness to change anytime soon. The units are cool, and if I’m a buyer in the $200s looking for a lake-based weekend, I’m paying Abbey Hill a visit.
The other Fontana property that should be directly tied to the single family market is the Abbey Villa. This is not to be confused with the Abbey hotel condominiums, which are different and, in my opinion, not a good idea. The Abbey Villas have had some difficulty over the last market cycle, but today the recovery seems complete. Last year there were 10 sales in the Villas, closed between $165k and $255k. 2017 had has five closings YTD, all priced between $216k and $260k. There is currently just one unit available at the Villas, priced in the mid $200s. The Abbey Villas have completely and thoroughly recovered, and for that, we can all be pleased.
Two condo markets, both in Fontana, both tied directly to the single family vacation home market. Both performing quite well, as they should be. If you’re a buyer looking for a sub $300k lake home, consider these condos. Specifically, consider the Abbey Hill units. They’re affordable to own and I don’t think there’s a better value in the Fontana market. As always, let me know if I can help.