The lakefront condo market on Geneva must feel like 2009 is never going to end. It’s been a horrible year for the lakefront condo, and much of the malaise has to do with a curious detachment from the broader market. I’ve already told you where I think the entry level lakefront market is heading (to an entry point of close to $1MM), and on numerous occasions I’ve documented the struggles of the lake access market. Largely, the lake access market and the entry level lakefront home market are in the process of adjusting to meet buyers new pricing demands. I was going to say expectations, but let’s not fool ourselves, they are demands. Sellers are reticent to meet these new demands, but as homes around them succumb to lower offers, new price points are being set that require sellers to adjust. That’s pretty simple economics, but the lakefront condo market hasn’t been paying attention.
This year, there have only been four lakefront condominiums sold. The unit I sold at Fontana Shores (best condo deal of the year), two at Vista Del Lago, and one at the marginally lakefront Geneva Towers. There are currently seventeen lakefront units for sale, with inventory available at Fontana Shores, Bay Shore, Harbor Watch, Old Boatyard Condo’s, Vista Del Lago, and Geneva Towers. The units at Geneva Towers are listed as being on Lake Geneva, but most of us learned decades ago that the lake is Geneva, the city is Lake Geneva. The sales this year have been relatively low, in fact, all four of the units have sold for less than $499k. I may be a real estate savant, but even the most simple minded person can figure out where the lakefront condo market is at.
In spite of the four sales that provide a giant flashing neon sign indicating the preferred price range of the lakefront condo buyer in 2009, prices for active inventory on the lakefront remain mysteriously high. Now, I’m obviously not addressing the entire lakefront condo market and demanding that the prices all fall to sub $500k levels. Many units at Vista Del Lago, Harbor Watch, Old Boatyard, Stone Manor, Somerset, Fontana Club, and Bay Colony all deserve to be priced in excess of $500k. What I am saying is that the standard issue, two bedroom lakefront condo measuring roughly 1100 to 1400 square feet needs to get its overpriced rear end closer to $500k if it wishes to find a new buyer. Even in light of the market movement, there are only two units on the lake priced under $500k as of this morning. There’s a one bedroom unit as well, but I’m talking about the two bedroom standard bearer.
One of the two units priced in the correct range is my two bedroom unit at Bay Shore. It’s no coincidence that I’m representing a condo that is priced where it should be, as there’s no reason to work on overpriced listings in this market given the intelligence and awareness of the buyers in this market. My two bedroom unit is priced at $469k, and not only is it affordable to buy, it’s the most economic condo on the lakefront to own in terms of combined association dues and taxes. Bay Shore has a new lakeside swimming pool (the only lakeside pool of its kind at a lakefront complex), and boatslips for everyone. The unit has a lakeview, and private townhouse style entrance. It’s worth thinking about if you’re a lakefront condo buyer and lakeviews, boatslips, and swimming pools float your boat.
It will be interesting to see what happens with the lakefront condo market over this peak buying season that runs for the next eight weeks. If sellers refuse to adjust to the new realities of the lakefront market, then it’ll be a very slow winter indeed. If sellers open their eyes, react to what buyers are willing to pay, then we may see a couple sales over the next two months. Remember, seller apathy is at an all time annual high for the next eight weeks, and there’s no better time to make a deal than when sellers are least expecting one. I’m the overall transaction leader involving lakefront condominiums on Geneva over the past ten years, so if you’re thinking lakefront condo, please think Dave Curry as well. See you at the lake.
(By the way, I have to say thanks to Algore for the fact that it’s 52 and sunny in Lake Geneva on December first)