Fontana Real Estate Market Prices, Trends & Forecast 2023

 

The Fontana real estate market has experienced growth in recent years thanks to its captivating location and diverse offerings. From charming lakefront cottages to upscale estates and exclusive gated communities, the village caters to a range of preferences and lifestyles. The shimmering waters of Geneva Lake and the rolling hills provide a stunning backdrop for residents as well, who can enjoy an array of activities like boating, fishing, and hiking. Beyond the natural beauty, Fontana fosters a strong sense of community, organizing various events and festivals throughout the year to create a vibrant social scene and greater connections among neighbors. Its proximity to Milwaukee and Chicago doesn’t hurt either, ensuring residents have easy access to all the best of the urban Midwest.

If you’re considering buying or selling in Fontana in 2023, explore some of the following insights and market conditions. Whether this is your first foray into real estate or you know the process inside and out, you’ll want to keep up to date on the latest trends so you can know what to expect from the Fontana real estate market this year.

Overall, the Fontana housing market is forecasted to experience modest price decreases, influenced primarily by higher interest rates and potential shifts in demand. Homebuyers may take a more cautious approach, leading to a slowdown in price appreciation, while sellers may find their homes lingering on the market longer. Staying informed about market conditions, carefully considering financing options, and evaluating long-term investment goals will be crucial for navigating the evolving Fontana real estate landscape in 2023.

While prices are currently rising in Walworth County, it’s essential to consider the potential for a decrease in overall home values in year-over-year comparisons by the end of 2023. To truly predict pricing changes, demand, and inventory fluctuations, economic factors have to be taken into consideration. Quick increases in pricing like those seen at the onset of the COVID-19 pandemic and interest rates seen in recent months are difficult to sustain, as they often exceed income growth. This means that, eventually, buyers may become unable to afford properties, which can cause demand to lower. In Fontana this year, we expect modest price increases throughout the peak summer season, followed by decreases in the fall and winter.

Currently, interest rates in Wisconsin for 30-year, fixed-rate mortgages sit at over 7%, dramatically impacting buying potential for newcomers. Higher mortgage interest rates reduce the affordability of properties by increasing the cost of borrowing, which then impacts demand. As of June 2023, the average mortgage payment for residents living in Walworth County sits at $1,499, a staggering increase from last year’s $916. This increase is primarily due to this year’s interest hikes.

However, this isn’t to say that the area isn’t desirable. Many buyers may enter the market to look for homes for sale in a less-competitive market, allowing them more time to conduct their search and make informed decisions.

For landlords, the combination of higher mortgage interest rates and potential fluctuations in home values requires careful consideration. The increased borrowing costs may create an influx of demand for rental properties, potentially improving rental prices and vacancy rates. However, if landlords are increasing their prices to keep up with inflation, they may find reduced interest in vacant units, especially if the population growth in Fontana remains low. Adapting strategies, staying informed about market trends, and maintaining competitive rental offerings can help landlords navigate the evolving real estate landscape this year.

Population growth in Fontana is expected to be modest in 2023. Though the town saw a population increase of over 5% in 2020, that rate dropped to under 1% in 2021. Though population growth could remain on an upward trajectory this year, it’s not expected that residents will see a surge of newcomers, which could impact demand and home prices.

Current reports show median home values in Walworth County of over $319,000. However, the number of home sales has been down month-to-month in comparison to 2022, following a trend of decreased annual sales since 2020. Median home prices across the county have been higher this year, though, and could continue that trend if demand for homes remains higher than the available inventory.

The COVID-19 pandemic had a notable impact on the Fontana real estate market. As the pandemic progressed, the demand for housing in Fontana surged, caused in part by buyers seeking suburban properties with more space, home offices, and easier access to the outdoors. This increased demand led to a competitive market with limited inventory and rising prices. Though there has since been a cooldown in the market, COVID-19 reshaped buyer preferences and resulted in a historic real estate landscape across the country.

There are less than a dozen homes in foreclosure in Walworth County. Low foreclosure rates are positive signs, as they suggest that homeowners in the area can meet their mortgage obligations and maintain ownership of their properties. This indicates financial stability and a lower risk of distressed properties flooding the market, which can negatively impact property values.

With modest price decreases and higher interest rates, buyers should assess their risk tolerance, financial capability, and long-term objectives before plunging into the Fontana real estate market. Conducting thorough research and seeking guidance from a strong real estate expert will be the key to success. If you want to call Fontana home, the following are some of the area’s top neighborhoods to consider.

Abbey Springs is a prestigious golf course community offering luxurious living, with a gated entrance, beautiful greens, a marina, and exclusive amenities like swimming pools and tennis courts. Residents of Abbey Springs enjoy true resort-style living in a community that exudes elegance and boasts stunning views, meticulously maintained properties, and a vibrant social scene.

Buena Vista is a charming neighborhood known for its peaceful atmosphere and close-knit community. Surrounded by nature, residents enjoy scenic beauty and a tranquil lifestyle amidst a mix of charming cottages and modern homes. It’s not uncommon to find properties with private lake access or at least fantastic water views. Buena Vista is an ideal neighborhood for those seeking a serene retreat and a cozy sense of community.

Fontana Heights is another desirable neighborhood perched on the hills overlooking Lake Geneva. With its elevated location, many properties have breathtaking lake views. The neighborhood offers spacious homes with large yards, providing more exclusivity and privacy while still being conveniently located near downtown Fontana.

Investing in the Fontana real estate market requires thorough analysis and strategic decision-making. With the potential for modest pricing changes and continued interest rate hikes, seeking the guidance of an experienced real estate professional like Linda Tonge can provide invaluable insight and support in navigating the market. Contact Linda Tonge today to explore your options and make an investment you can feel confident about.