I subscribe to the real estate belief that maintains that smaller associations are, at least generally, better associations. If I was given the choice between owning a vacation home in an association with 200 homes or an association with 20 homes, I’d probably choose the smaller association. There is value in exclusivity, and if I’m making a vacation home purchase, I’m looking for value first, and lifestyle accomplishment second. If all other items are the same, i.e., quality of lakefront park, quality of lake rights, absence of presence of slip or buoy, then I’m going to buy the home in the smaller association.
It’s this preference for rarity that drives my interest in smaller associations like the Lake Geneva Club, The Loch Vista Club, The Harvard Club, and Hunt Club Lane. Yes, we are clubby up here, but it’s for the better. The smaller the association, the more likely it is to have been originally called a club. Even though I do love these small, exclusive clubs and single lane associations, I understand how the larger associations also fit into our market. Cedar Point Park in Williams Bay and Country Club Estates in Fontana are two of the largest associations boasting private access to Geneva Lake, and one in particular has filled a nice void in the market.
Country Club Estates is located just south of the Abbey Hotel, occupying a section of land that stretches from South Lakeshore Drive (where the lakefront park waits) all the way southwest to County Road B. The association is quite large, and has a terrific assortment of architectural styles to choose from. They also have a small golf course that’s ideal for duffers and kids alike. The association lakefront has a private parking lot and access to a wonderful sand beach with private pier. The Fontana location is ideal for anyone looking to be close to the Fontana-inspired action. Gordy’s and Chuck’s are walkable from the beach and lakefront, both able to easily satisfy the sort of hunger that arises after a morning spent lounging lakeside. The Country Club Estates pier is adjacent to the Abbey Harbor entrance, making this a great place for boat and people watching. I particularly enjoy both. That sounded creepy, but you get the idea.
As of today there are 21 homes available in Country Club Estates ranging from $179k to nearly $1.5MM. Several of the homes in this association will have lake views, particularly the ones either immediately towards the lake on Shabbona, or those that hang off the north side of Arrowhead Lane. These homes with views are also the most expensive, even though some of the prices seem a bit aggressive if you ask me. Of the 21 available homes, two are currently pending sale (all per MLS). Year to date there have been two sales in Country Club Estates, including one that just closed last week on Potowatomi for $200k. I’d guess that prices are down around 20% in Country Club from the market highs- perhaps more- making this association a perfect choice for those seeking an entry level vacation home at Lake Geneva. $350k might buy you a small cottage in the Loch Vista Club, but it’ll buy you a fairly substantial home in Country Club. The primary difference being proximity to the water. While anyone in the Loch Vista Club can easily saunter down to the lakefront, the vast majority of homes in Country Club will have to utilize their car to drive down to their lakefront park.
With two sold properties and two more pending right now, it’s important to look at the historical context of those totals to see what’s really happening with the Country Club market. During the year long trek through the slough of despond (Pilgrims Progress reference) that was 2009, Country Club registered 2 YTD sales (through May 17th). During 2008 there were 3 sales YTD. 2007? 2 sales. You’d have to go back to 2006 to find the last signs of momentum in Country Club, when 8 sales occurred from 1/1/06 to 5/17/06. So it’s easy to see that 2010 is shaping up to be consistent with the previous three years, but we’re still a far cry from the unicorn filled year of 2006.
What to expect for the rest of the year? I think Country Club will continue to trudge along, without any considerable improvement in the market there for the remainder of this year. If entry level buyers return to the market, which I doubt they will, Country Club will be a primary beneficiary. A couple weeks ago I wrote about the absence of the prized entry level vacation home buyer, and can only hope that the suburban housing markets slowly improve to a point where our market reflects that increased confidence.