I vacillate between an altered line of thinking that places value on a view of the lake over proximity to the lake. I understand both, and I think the determining factor in any such purchase falls squarely on the broad shoulders of personal preference. If you’re going to use the lake- to swim in it, bask near it, to love it- then I think it’s best to buy as close to the lake as possible. But if you’re content to view it, to watch from across the room or from atop a hill, then proximity can take a back seat to that view. If it’s me, I know to never put proximity in the back seat, as it as unruly thing to try to force into such cramped quarters. And don’t even think about trying to get her to put on her seat belt. Earlier this week, a vacation home buyer graduated from buyer to full fledged owner, and in the purchase of an $800k Country Club Estates home they put view and style ahead of proximity. For this, I cannot blame them.
The Arrowhead home that sold earlier this week was a beautiful home. Like a really beautiful home. It had style, space, functionality, and that view, all wrapped in a tidy cottage style package. It was an easy property at $800k, and it did represent some form of value. As our market shifted over recent years, I didn’t see much demand for lake view homes, or lake access homes that lack a slip, priced over $950k. It didn’t make sense to me to buy these homes when viewed against the newly affordable lakefront values. There are exceptions of course, there are homes that are so unique and so refined and so intensely stylish that to purchase a home off the water without a slip for a million or so bucks can, at times, be understood. Most of the time this isn’t the case. The Arrrowhead home was originally listed in February of 2010 for $1.195 wasn’t a value then, in mine or anyone’s book. Today, at $800k, it isn’t a value that could be celebrated with the anxious firing of pistols into the air, but it certainly is a value that deserves a soft, tender applause. Like a golf applause at any tournament but that rowdy one in Arizona.
The rest of the market is a bit quiet at the moment. There are pending sales, sure, but not a whole lot of new ones. Four lakefront homes are pending sale- one in Cedar Point (to my buyer thankfully), one in Wooddale, another on the South shore of Fontana, and the most expensive pending sale is my listing at Oak Shores (fingers crossed). There are association homes pending, one in Cedar Point, another in Country Club Estates, an Oakwood Estates lake access home, and two sales in Sunset Hills. Those two pending in Sunset Hills make my teeth hurt. I shall ask my dentist about this.
Inventory around the lake hasn’t changed much of late, as August isn’t a typical month for new listings. We should build some inventory in September, though this year I’m not expecting much of a burst of new listing activity when compared to recent years. I do think the fall selling season will be robust, a belief that hinges on a relatively stable stock market and a hope that our president doesn’t make too many speeches to spook those markets and those with businesses and elevated incomes. The market this fall should be solid, and the fall numbers should push 2011 ahead of 2010 in nearly every market segment within our broader Lake Geneva vacation home market.
There are values today, values that excite and values that raise a mere eyebrow of interest, but values nonetheless. Activity in the entry level lake access market, those homes priced under $500k with deeded lakerights to Geneva, appears to be on the rise, and this weekend looks to be an entry level marathon of sorts for me. I shall train today by resting I think. There is some tepid interest in my Harvard Club listings right now, which means that you should probably call or email me if you’ve been mulling those over. I expect a sale there before the fall is out.
Price reductions will ramp up now, as sellers position themselves for the fall run of buyers. There are ways to separate oneself from the market, but red carpets and unicorn rides only work for Josh Flagg in Beverly Hills. In Lake Geneva, if you wish to attract a buyer you really don’t need to primp and polish, you just need to hack a little fat off that asking price. Buyers here are sensible, they are not easily confused and they certainly don’t care much for red carpet. Price adjustments will be common in coming weeks, as some sellers who actually understand the concept of selling do their best to accommodate a discerning buyer. While the market is modestly active, it should be a bit quiet for the next two weeks as busy parents get their kids whipped into school shape, and distractions keep them from the living waters of Geneva. After Labor Day the market will warm again, as buyers and vacation lovers alike recognize that September is just like August without all those kids around.
Photograph by Ideal Impressions Photography.