2008 was a year to remember for the Geneva Lake residental lakefront market. Not because it was particularly impressive in terms of volume, or because there were more than a couple amazing deals, but because of what the market didn’t do. The market didn’t bend in spite of economic conditions as bad as any of us have ever seen. No hiccups, no fire sales, no price declines. Overall, it was a great year to be an owner of lakefront property in Lake Geneva. Stability combined with relative liquidity is always a good thing
We had a total of 12 lakefront sales in 2008. There were many other sales of properties that some may consider lakefront, but these 12 were the only sales with private actual lakefrontage on Geneva Lake. According to public records, the average sale price was $2,696,427, contrasted with an average list price of $2,852,750. The list to sale ratio was 94.5% for the year. That list to sale is stronger than the 90% list to sale for 2007, reflecting a more stable market. The most economical lakefront home was in the Highlands and it sold for $1,764,000. The highest sale was a residence on Black Point that closed for $4,050,000.
The stability that is exhibited in these statistics should impress you whether you’re a buyer or an owner. For owners, your investment is secure, and in most cases, still appreciating at a modest clip. For buyers, this should be more proof to you that an investment in the Lake Geneva market is as secure of investment as you can make. Get out of that silly stock market and park a couple million bucks in a secure location that you can actually enjoy. Money in the bank isn’t fun, unless you’re Scrooge McDuck and you can swim in a giant vault of cash. Money that you have to worry about maintaining value is stressful, and it’s not a key to happiness. Owning a home on a gorgeous lake that you and future generations can enjoy, now that’d make you happy.
My thoughts on the 2009 lakefront market? I think we’ll see increased volume this year, but that depends largely on inventory totals. Our inventory has been very low for most of this year, and unless we build that inventory by as much as 40%, I doubt we’ll be able to beat 2008 volume totals in 2009. Pricing will probably remain the same, though the year end averages depend largely on the quality of the inventory sold. We can have 3 units sell in the $2MM range and skew the average lower, just like we can have 3 more units sell in the $4MM range and skew it higher. The sample size is small, so you’re best to concentrate on individual properties rather than year end statistics.
If you’re a seller, now is a great time to be on the market. There are a handful of properties that are overpriced right now, and if you’re realistic, you can capture the buyers that are in the market this winter. If you’re a buyer, what on earth are you waiting for? Honestly, what is it? You want lower rates? No, that can’t be it because rates are silly low. You’re waiting for prices to “bottom out”. What? The market has been in decline since the second quarter of 2007, and prices are still stable. They’re not going to bottom out. You’d be best served to hook up with an experienced, intelligent agent (still me), and negotiate the best deal you can. There are values in this market right now, including my lakefront on Conference Point for $2.795MM with 125′ frontage (per survey). There’s a lakefront in Fontana listed in the upper $1MM range that is an absolute steal right now. Email me and I’ll send you the detailed information on these and every other lakefront home available right now.
In review, 2008 was a tremendous year for lakefront property here. Not tremendous because of what happened here, but tremendous because of what didn’t happen. We weathered the perfect storm, and we’ve repositioned ourselves as perhaps the most stable option for your vacation dollar.