Geneva National was neglected in 2009, and it’s unfortunate. The story behind the short life of this massive development just north of Geneva Lake, and west of Lake Geneva (some Realtors who think the city and the lake share the same sequenced name just thought I described the nexus of the universe), is intriguing to say the least. There is no other individual market like it in all of Southern Wisconsin. The quality of the golf, the intelligent design, the rolling topography of the land, the forests and prairies, it’s a special development that has successfully brought together many of the components that developers and buyers alike spend their nights dreaming of. A golf course centric oasis in the heart of a world class vacation community, with prices ranging from $150k to $1.5MM should be a valuable asset to any market, anywhere.
Should be, but given the performance of Geneva National over the past 24 months, it’s obvious that buyers have turned a cold shoulder to this development that is becoming increasingly famous for running hot and cold. I have a theory about GN, and as someone who has owned three different properties in GN, and sold real estate for 14 years, my theory should be accompanied with a heavy dose of credibility. GN, over the long run, will prove to be a viable community in the Lake Geneva vacation home market. The design is too well executed, the property too aesthetically stunning, and the amenities too complete for the development to languish in uncertainty over the next several years.
That said, there are individual issues with GN that are inescapable. Certain newer enclaves within the overall development should be avoided, as I believe they may either fail entirely, or the build out will occur over too many years to view them as successful. GN has a massive amount of built inventory, with 1100 or so units currently platted, and the possibility of several hundred more permitted in the declaration. The developing groups within GN need to take some advice from me if they wish to enhance GN and the market there. Stop building more units. Stop it right now. There are 109 properties (not including vacant land or unlisted spec properties) listed on the open market today, providing plenty of choice for a buyer looking to make GN their weekend or full time home. One development group famously ignored the advice of the ARC, and proceeded to build an enclave of additional units that has failed to attract the attention of all but a few select buyers. GN is filled with figurative housing potholes, but there are solid opportunities that exist, even in light of the few failing enclaves within the master community.
So if I’m avoiding certain newer, unfinished enclaves, what would I be buying in GN? The easy answer is single family homes (at the right prices), and condominiums in established, 100% built out enclaves. The Lakelands, Highlands, Woodlands, Terrace Drive units, and Golfview Villas to name a few. These condo developments within GN are established, and built out, which eliminates the worry that a developer will become impatient (or broke) and slash prices on the remaining units in order to liquidate his position. By avoiding enclaves that are incomplete, I think buyers can successfully navigate some of the trouble spots that undoubtedly exist with the borders of Geneva National.
GN was largely ignored in 2009, a year in which only 31 units sold in the entire development (per MLS). 2008 saw 45 sales, but to fully appreciate the precipitous volume decline in GN, you’ll have to look back to 2006 when 91 units sold. While much of our vacation home market is experiencing volume that is roughly 40% off from the volume highs of 2005 and 2006, GN is down nearly 70%. Like the rest of our market, volume has fallen more significantly than values have, though GN as a whole is probably as much as 20% off from the previous market highs. Some single family homes are offered at as much as 40% off previous highs, while some condominiums are selling for as little as 10% off those same highs.
Unlike other individual markets at Lake Geneva, GN does not suffer from a lack of quality inventory. I’m personally bringing a couple of great new units to the market later this month, properties that I’ll showcase here to show you what your money can buy you at Geneva National. I see a rebound in both buyer activity and sales in GN for 2010, as I think buyers will recognize value, and once again recognize that Geneva National is a prized location in the Lake Geneva market. For golfers, there is no better option for your Lake Geneva loving dollar, and for families in search of resort style amenities located just a couple miles from both Geneva Lake and Lake Geneva, there is no better option. If GN looks interesting to you, and buying high quality finishes with loads of square footage at bargain prices sounds like a good idea, we need to talk. Or email. Or text (262-745-1993).