We’re at the tail end of the very typical seasonal lakefront lull, when hibernating buyers find their way back to the lake to look at the most fabulous lakefront property around. The winter is particularly hard on the lakefront market on Geneva, and with prices that have softened but still don’t appear cheap, buyers have largely taken a pass on lakefront homes over the past several months. One lakefront home I drove past last week had snow drifts where the driveway would normally be, so I’m pretty sure that home hasn’t had much activity all winter. Even so, buyers are returning in some numbers, and I’ve been showing lakefront fairly steadily over the past six weeks, but most are content for the time being to watch from the sidelines to see how the spring market shakes out. That complacency is a mistake in my book, but that book won’t be on Amazon for at least two years.
This young year has yielded two lakefront sales so far, both priced towards the entry level end of the market. The first sale was on Bluff Lane in Wooddale, and the property closed at $1.392MM. Rumor has it that the actual sales price was closer to $1.5MM, but we’ll leave that as a rumor, and stick with the MLS provided number. The other sale was quite interesting, as the property was in a business district, right adjacent to the Geneva Inn just past the southern boundary of the city of Lake Geneva. This property sold for $2.2MM, and it sold very quickly after being listed. I’m not privy to the intent of the buyer, but I wouldn’t be surprised to see some sort of future business or otherwise commercial use in that location. As far as residential locations go, it wouldn’t be my first choice. Or twenty-second.
The lakefront on Circle Parkway in Williams Bay that I talked about a bit here is now under contract. The list price of that home is $1.295MM, making it the cheapest home available on the lake. It’s under contract now, and the rumor is that the new buyer is planning on a renovation of the existing home, rather than a tear down. That’s a smart use of the site, and as long as his design is solid, his efforts will be rewarded there. As of this morning, this appears to be the only lakefront on Geneva with a pending contract.
I expect to see a couple more sales in the next 6 weeks, as buyers find some motivation in hopes of taking occupancy before summer. A summer spent at the lake is unlike any summer you’ve ever experienced, and wise buyers will snap up some of the better priced lakefronts on the market right now. There remains a glut of expensive homes, with only one of the homes priced over $5MM appearing to be salable right now.
I mentioned at the beginning of the year that the 2010 lakefront market would be heavily dependent upon the introduction of quality inventory to the market. With one or two exceptions, the lakefront homes that have been added in 2010 have been overpriced and underwhelming, so even though the inventory has grown, it hasn’t exactly impressed. As of this morning, I counted just 28 true lakefront homes on the market, which is pretty much in line with historical averages. I’d guess that by Memorial Day we’ll have another five lakefronts to choose from.
In reviewing the current inventory, I’m particularly fond of a listing in the mid $2MM’s on the South Shore of Fontana, and another listing in the low $2MM’s on the North Shore of Fontana. Both of these listings excite me, and should represent pretty solid values for the lucky buyers that act on these two. I still love the pseudo-lakefront on Conference Point in Williams Bay priced in the mid $1MM’s, and can’t imagine a situation where that property isn’t sold by mid-summer. With a boat slip, lake view, swimming pool, huge manicured lawn, and a substantial, classic house, this has been the lakefront’s best kept secret for the better part of two years.
I’ll be watching the lakefront closely over the upcoming weeks, and expect we’ll see a lakefront sale or three before the end of May. Chances are the properties that sell will be the ones that I see value in, and I’ll be sure to let you know if that’s the case. I personally have a large, overflowing handful of buyers in search of lakefront right now, so with any luck and some buyer motivation, I’ll be able to help some wise buyers usher in what will become the best summer of their lives. Life might be short, but summer’s even shorter. See you at the lake.