Weekends like the one now past never used to provide the test to my sporting allegiances as they do now. The Badger, the nasty, potent, juggernaut Badger, taught the Cornhusker what it’s like to play in the Big 10. I assume the Cornhusker didn’t enjoy their lesson, even if their fans undoubtedly enjoyed Madison, the city, if less the team. While I consistently root for the Badger, I do not feel the same about the Brewer or the Packer. I had no better baseball experience than witnessing the Cub defeat said Brewer on one crisp September night inside the friendly confines of Wrigley perhaps three years ago. That win sent the Brewer home and propelled the Cub towards the playoffs. That win on that evening was pure magic. Never mind that they’d be swept out of the first round two consecutive seasons, I didn’t yet know that then, even if I might have suspected it. And the Packer, well I grew up hating them. I hated them when they were good and I hated them when they were bad. But now, with my Bear fandom intact, I tend to appreciate them. I like to see a team from the smoke stack packed city of Green Bay routinely decimating large market teams. I like their story. And on a day like yesterday, when the Bear can barely sneak past a surprisingly good Cam Newton, I took a little sip of pleasure from the Packer and the 12,000 yards of offense they compile without breaking a sweat. Weekends like this fuel my conflicted hatred for the inept Chicago teams that I root for.
But today isn’t about sports, it’s about September. While I chronicled how I felt about last month’s weather, the time has come to recap the market movement from that spent month. I’ve already told you how the fall market hasn’t provided the sort of boost that it historically might, and how the weather may be to blame, and also how it may not be. But September closings are not indicative of September buyer traffic, as September closings reflect July and August activity. The single family market surrounding Geneva saw just 4 sales during the month of September, making for a difficult month for the overall market but a happy month for yours truly. Two lakefronts sold last month, both transactions involving some David Curry guy who works out of a small office in Williams Bay. If you’re just now joining us, and you haven’t read the side bar, then I should tell you that my name is David Curry. That should also explain why it was a happy month for me.
But those two sales, the one on Circle Parkway for $1.44MM and the other at Oak Shores for $3.1MM, both told the story of the market quite succinctly. The market is one with movement, but soft prices. Buyers are in control, even in the lakefront market right now, and they will continue to wear out that pilot seat for the foreseeable future. If you’re a lakefront buyer, you are in a good position today, and it’s likely you’ll be in a similarly good position tomorrow and in the following days that will pour into months and then seasons. There were two other single family sales last month in our vacation home market, both in Country Club Estates, both telling a bit of a tale themselves. The cheaper of the two sales closed at $182k, but that isn’t the story. The initial list of this home was $367,500 in 2008, and various reductions were made before the final list price of $227,500 attracted the buyer. The other property was listed this year for $299k and sold for $270k after a reasonable amount of time. The moral of this story? A nice house in Country Club Estates will sell between $270k and $350k, and a blah house will sell between $160k and $220k.
Geneva National had a little closing activity last month, as six units/homes sold inside those defensive gates. The moral of the GN story as it relates to September? Well, that depends on whether you’re a buyer or a seller. If you’re a buyer, the places that did sell sold dirt cheap, which is a saying that either implies they sold for land value, or that they sold for the cost of actual dirt, which I haven’t priced lately. Either way, these places sold cheap. How cheap? The most expensive sale was at $550k, off of a $999k list price. That home had sold previously for $725k. I never liked the home anyway, so selling for $550k seems less “cheap” and more “reasonable” to me. The other single family sale was at $165k, but that number is deceiving. The home that sold was straight strange. It was a “fireproof” home, with cement block construction and other strange fireproof things. Perhaps in the deserts of California this sort of construction would have been appreciated, but this is Lake Geneva. Rampant wild fires concern me only slightly more than global warming.
That home was bank owned, and sold for a price that sounds cheap, but in reality isn’t. The home needs much finishing, and when that fireproof home is compete, it will still be a fireproof home on a less than ideal lot in Geneva National. Potential future market value? Who knows, but I’m not a buyer now and I won’t be a buyer then. The other single family sale in GN was of a home with questionable architectural appeal, priced at $274,900 and closed at $252,500. A fine home, but nothing exciting. The price was fine, neither a win for the seller nor a win for the buyer. It just was. The other three sales were of condominium units, closed at $350k, $365k and $125k. GN is still ripe with value, but obviously very few buyers are taking notice.
Abbey Springs didn’t record a single sale in September, nor did the lakefront condo market. I’m not sure how October will look, as October sales should be an indicator of August and September activity, and we’ve already discussed how uninspiring September was. There will be value this fall, both in the lake access and lakefront markets, but it won’t be obvious if you look to the list prices as your guide. Remember, sometimes even sellers who are reticent to reduce their list prices are far more motivated than you might imagine. Sunny and 70s this week means boat based showings if you’re a lakefront buyer seeking out value on Geneva. See you at the lake.