Vista Del Lago Sells

When a market is down, I have absolutely no problem kicking it. I also don’t like to make excuses for market segments, as I’d rather try to identify the problems that lead to the market troubles, and then, once those are identified, I’ll kick a bit more. Along those lines, I also have no problem celebrating the successes of certain markets, particularly when those success come on the heals of some heavy duty kicking. Enter Vista Del Lago.

During 2013, there were two sales at Vista Del Lago (per our MLS). Both of those sales were of condominium units far away from the lake, and both sold under $300k. A two handle hadn’t been seen in Vista for many years, so these sales prices were a surprise to some, even to me. The problem, as I saw it, was that the sort of buyer who would generally buy a condo for $280k wouldn’t be able to afford the steep City taxes and the heavy Vista dues. This is likely the usual case, but two buyers last year bucked that concept and bought their own vacation homes at Vista Del Lago anyway.

There was inventory available at Vista during all of 2013, but only the two sold. 2014 has proven to be much kinder to this lakefront association, and in the past week there have been two closings here. One sale printed at $415k, the other at $550k (neither sale was mine). As you’d expect, both units have market stories that are long and varied, and both stories are likely the sorts that no one would rather talk about. Except me, because of the kicking.

The unit that closed at $550k originally came to market in 2009 for $1MM. One Million Dollars. The unit was never worth that, mind you, but that was the price. What followed over the next five years is a classic example of market chasing. The price was dropped, systematically though unevenly, before it finally settled at the $599k asking price that yielded the $550k buyer. The unit was unique, and I admit to liking it quite a bit. The finishes were old, but the layout was unique, the views divine, the slip deep and close. The issue here is the nearly $15k tax bill, combined with $888 monthly dues. The unit I sold at Eastbank a couple weeks ago had a tax bill that was a tad higher, but the unit was much larger, and the development much more exclusive.

The unit that closed at $415k was listed $444,900, and followed a similar, if less dramatic, pricing path. I actually had this unit listed for sale in 2010 for $589k, and obviously failed to sell it at that time. The reductions came after my listing was up, and this price of $415k was a fair market price paid for a three bedroom Vista unit. The taxes on this unit exceed $10k, requiring a buyer that can not only pony up the purchase price but one who can stomach the ongoing monthly expenses. Thankfully for Vista Del Lago, these two units have both found buyers, and in that, we can all be happy.

There’s another unit pending on the lakefront at the moment, that of a three bedroom penthouse at Bay Colony. Listed at $650k, the unit needs updating, but it is a rare unit in a very nice location. Combine that pending sale with these two Vista Del Lago closings and my Eastbank closing from a few weeks back, and the lakefront condo market has started 2014 in a most impressive fashion. Expect sales to continue in the lakefront condo market, as many seller’s prices have finally succumbed to buyer’s expectations.