A couple weeks ago, a new lake access listing in Oakwood Estates hit the market. I had a couple of buyers who I thought might be interested in it, and let them know that this particular property was a value and that it would sell quickly. Two of those customers ignored me, which I’m used to, the third offered me the vague promise of a showing several weeks from even now. The property, listed at $349k, went under contract just a few days after the listing hit the MLS. I let my buyers know of the sale, and they were, as a whole, surprised. Were they surprised to see a sale in general? Perhaps. Buyers who get comfortable in the winter looking at properties for months before displaying either a thumbs up or down find it difficult to comprehend something that arrives in our vacation home market here come March and April- motivation. When motivated buyers find what they want, they buy it, and that action is difficult for buyers who feel little in terms of motivation to come to terms with.
The property in Oakwood Estates that is pending contract was a wonderful lake home, and the new owner will now enjoy a summer unlike any that they’ve experienced previously. Oakwood Estates is a fine lakefront association, and possibly the only association that I know of that has a waiting list for buoys that isn’t generations long. The good news for buyers who may have dilly dallied a little too long on this property is that there is another similar home offered at a similar price just two doors away. Just ask if you’d like the details on that one.
Another bit of market activity last week worth discussing is the long awaited sale of an entry level lakefront home on Circle Parkway in Williams Bay. This entry level lakefront was listed just under $1.3MM, and closed last week for $1.145MM. This sale price was a bit more than I thought the home would go for, but still registers at a market shaking $19,000 per foot of lakefront. Just the other night I was at a dinner party when a guest mentioned something about Lake Geneva lakefront going for $25k per foot, which may be more than true for several improved properties, it’s not the case any longer for raw land value in the entry level market. This $19k per front foot figure lends more proof to my belief that entry level lakefront has fallen very close to the million dollar mark.
This home was quite limited, and was high on the Cedar Point bluff, but it is still lakefront, and the sunset views from this perch are second to none. Rumor has it that the new owner may be renovating the home instead of tearing it down, which I think would be a smart move from a resale position. It should be noted that this home was originally listed at $2.3MM, which was way too high even at the height of our market. I personally wrote an offer on the property in the $1.5MM range several years ago for a buyer, and that offer should show sellers that many times offers that look poor at the time will indeed end up being your best offer.
This lakefront was the most humble of the existing entry level lakefront homes for sale, and the next “cheapest” entry level lakefront is now priced at $1.5MM. I expect we’ll see these entry level lakefront homes sell for closer to the $1.2MM and $1.1MM mark as the year progresses, though in order for the price to be that low we’ll probably have to see either a very dilapidated home, or a bluff setting. We’ll see if the entry level lakefront market reacts to this sale as it should, but I have my doubts that any other owners will actually take note. Several of the lakefront homes in the $1.5MM to $1.9MM range might need to sell in the $1.2MM to $1.4MM range if they wish to find a buyer in 2010. Entry level deals still exist, with one Fontana lakefront taking the cake as the best entry level lakefront deal currently on the market. Other lakefront values I see now are in the mid $2.5MM range, and I still think the South Shore Club vacant land is primed to sell at a severe discount. Speaking of- there’s a vacant parcel pending sale in there right now, and I’ll be sure to provide a market update on the SSC as soon as that parcel closes.