I was showing houses in Fontana’s Country Club Estates yesterday, and thought it fitting to comment on the state of the market there. The association has long been a stalwart of the entry level lake access market at Lake Geneva, with homes in recent history priced from around $200k through $700k. The price shift of the past three years has widened the existing range within Country Club, and today there are homes priced from as little as $169k through nearly $1.5MM. Don’t ask what I think about the price of $1.5MM for an off water home without a boat slip…
The association has a nice feel, with winding roads and a wooded canopy. A charming mix of cottage style and otherwise styled homes line those streets, and while the association feels a touch suburban, it’s merely a touch. Oh, and there’s a golf course, lakefront beach, and tennis court. As Fontana has made huge strides to set itself apart as the most desirable lakeside municipality, Country Club has surely benefited. If a client calls looking for a lake access home priced under $350k, and they want to be in Fontana, they’re going to be looking in Country Club Estates for sure. The market here has drifted some over recent years, with sales totals that have remained fairly consistent since 2007, but still well off the market highs of 2006. During the first 213 days of 2010, we’ve had just 5 closed sales in Country Club. During the same span in 2006 we had 11 such sales. 2008 and 2007 both recorded 6 sales during this YTD range, and 2009 saw 8 sales close in as many days. So 2010 is a bit down from even the poorest of years. My eyes are fixed on 2008 and 2009 with a very narrow focus and beads of sweat forming on my billboard like forehead to further illustrate the intensity of my gaze. Anyway, those years were bad, and 2010 is worse. So what’s the deal?
As with most things real estate, the problem probably comes down to price. If I look at my own year and the clients I’ve helped purchase Lake Geneva vacation homes, many of the transactions have involved properties with boat slips. Country Club properties do not sell with boat slips. Moreover, the properties that I’ve been selling this year have all had tremendous proximity to the water. Country Club, aside from a select few homes on the northern tip of Shabbona do not boast such proximity. The price structure remains a bit of whack, and the market appears top heavy to me in relation to previous sales. Consider that there have been 5 sales in 2010 and those sales have ranged in price from $200k to $377,500. Of the 23 homes in Country Club Estates that are currently on the MLS, 10 of those homes are priced in excess of $400k. In other words, buyers haven’t been interested in anything over $377,500 and yet almost half of the inventory is priced in excess of that top end sales figure.
Of course price comparisons can be taken out of context, so it should be noted that three of the upper bracket homes in Country Club are quite impressive, with lakeviews and upgraded finishes and design. Even so, these three homes- all priced in excess of $1MM, are an exception to Country Club, as potentially as few as 10 homes in the entire development could scrape these higher levels. I do see some value in CC right now, but much of the mid-market pricing will need to drop further in order to attract buyers, particularly as we move into this winter. I hate myself for mentioning winter on August second, but I’m a forward thinker.
What the rest of the year holds for Country Club, I do not know. I can envision a scenario where three or four homes sell by the year end, but I can’t really see a sales burst even as a result of our historically active fall market. For buyers in search of reasonably priced summer homes with a Fontana location and private access to a sandy lakefront beach, perhaps Country Club is worth a look. Even for those who need a slip it might work, given the recent drop in Abbey Dockominium slips in the Harbor. Personally, I’d consider buying a home on any leafy street, as long as that street led me to the lake.