A few months ago, or maybe it was only a few weeks ago, a home in Cedar Point sold just a bit under $1.6MM. That’s not really a big deal, because Cedar Point has lots of homes that are worth just under $1.6MM. Maybe not lots, but certainly many, as the entry level lakefronts that were $1.2MM two years ago are all certainly in that $1.5MM+ range now. The home that sold was pretty nice, with a bit of a lake view and only a parkway dividing the home from the lake. It had no slip. Over the last twelve months, 5 lakefront homes- the sort with private piers and private frontage- sold for less than $1.585MM. In other words, Parkway homes for $1.585MM are rare.
How rare? Well, like forever rare. As in, since the beginning of time there hasn’t been a parkway house sold in the MLS for that much money. Even so, if the buyer liked it and wanted to part with some money to own it, who am I to doubt their move? While they’re likely loving life in their new vacation home, it needed to be pointed out that this sale was likely an outlier, and not a trend setter. Though you won’t find any macro trend that suggests $1.5MM off water homes in Cedar Point are hot commodities, there’s definitely momentum for off-water homes in the $1MM+ range.
I’ve long said that if we’re talking one million bucks, and we’re not on the lake, we need to be finding some form of unique arrangement. We need a stellar view, with a stellar house. Or we need a stellar house, with a slip. Or we need a stellar lot, with a slip and maybe a view, and a marginal house- that’ll do just fine. The market will generally prefer lakefront, if the price is the same as the off-water offering. That’s because private frontage provides freedom that cannot be obtained in an association setting, no matter how small or how lax your association. Just as the entry level lakefront market suffered through a period of low prices from 2010 to 2013, so did the off-water market that falls directly below the lakefront price scale. If entry level lakefront must feel the pain, then high end off-water homes must also be stung.
Today, the most economical true lakefront home on the market is a small lakefront for $1.35MM, followed by my listing on Lakeview for $1.685MM. There’s a home in Glenwood Springs in the $1.5s that functions as a lakefront home, but true lakefront isn’t all that debatable. If entry level lakefront is currently in that $1.5-1.6MM range, excepting remarkably small or otherwise compromised properties, it stands to reason that the off-water homes at or over $1MM should be faring pretty well. Right? Of course they are, and it isn’t just our outlier in Cedar Point Park. Currently, there are no fewer than three off-water homes with list prices great than $1MM pending sale right now. That’s a lot, considering the market hasn’t had much time for these sorts of homes over recent years.
One home pending is in the exclusive, gated Glen Fern. That’s a nice property, with a pool and a boatslip, and while the house may need to be de-1990’s-ed, it’s a rare property and it deserves a contract. Listed at $1.485MM, it’s not a steal, but it’s a nice market deal. I’m less thrilled about the other two off-water homes pending in this strata- those at Shore Haven and on LaGrange in Lake Geneva. Both homes are fine, I guess, and both have some views and a slip, so that’s nice. The bigger question is, if the entry level market wasn’t mostly void of modest offerings in the $1.2-$1.4MM range, would any of these homes be pending sale right now? I don’t think so.
The MLS currently offers six lake access homes priced over $1MM. Under $1MM, there are several more in the $900k range. I think the standout in this group is my listing on Main Street in Lake Geneva now listed at $995k. I had a contract on that home that fell through recently, because the buyer may not have wanted to spend weekends poolside, surrounded by elegant luxury. The home doesn’t have a slip, but it is impressive nonetheless. It’s a rare mix of vintage style with high end fit and finish. It should sell now, not just because it’s such an awesome house, but because there’s no easy lakefront for a buyer to stretch towards.
Each segment of this market is connected to the segment above and below it, which isn’t profound, but it’s surprising how many people fail to see these obvious connections. If the entry level lakefront is light on inventory, those segments above and below it should thrive. That’s exactly what’s happening now around $1MM, so if you’re shopping this range, just make sure you’re buying smart. Your property should have some elevated amenity- be it view, style, slip, or property. If you’d like to cut to the chase and avoid the mistakes around that price mark, just work with me and we’ll avoid them together.