Is it just me or has the resale market been hot?

Discussion in 'Purchasing DVC' started by lugnut33, Jun 5, 2013.

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  1. lugnut33

    lugnut33 DIS Veteran

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    Taking a look at the current resale websites there sure a lot of contracts that have sale pending on them and there really isn't a lot of contracts for sale on those sights.

    And it appears the resale market for SSR has stabilized or even improved as I see lots of listing in the upper $60's p/p and lower 70's for prices. I remember when it was low 60's and upper 50's. Matter of fact, I remember somebody on these boards picking up some SSR for in the 40's.

    Any ways, those are just my general observations, am I wrong?
     
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  3. lorie13

    lorie13 Mouseketeer DVC Gold

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    Yes it is hot and resale prices are on the rise. Loaded contracts seem to go pending in hours of being posted. Fair amount of ROFR taking place too, especially for BWV and BCV.
     
  4. DougEMG

    DougEMG DIS Veteran

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    You're not wrong, it's a sellers market right now. Lots of listing now are for stripped contracts which I take to mean that sellers are looking to maximize the value of their contract. I expect that this will current trend will continue until we have another recession or slow down in the economy.
     
  5. Nabas

    Nabas Mouseketeer

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    I think the same thing.

    In general, it seems to me DVC is running the same course as "regular" real estate. Prices bottomed out in 2011, early 2012, and now are making a comeback.

    It will be interesting to see if this trend continues in the fall and winter, when the "regular" real estate market normally cools off. What do you think? Will DVC do the same?

    Note that I'm not suggesting prices will come way back down again, only that resales should be a little easier to come by.
     
  6. chalee94

    chalee94 <font color=green>I thought all sand was ground up

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    there was recently a long thread on this. definitely hot at the moment. i will be very surprised if it stays like this...
     
  7. JWG

    JWG DIS Veteran

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    This has to cap soon (I think). Just got word from a broker that 3 separte 25 pt. BLT contracts went for their asking prices of between $110-$115. Now, I get those are nice small contracts. But still, $110+ is high, especially considering closing costs on each of those.

    If you're a DISer selling those congrats :thumbsup2. BUT, at the same time, boo for not accepting our offers ;).

    I can't believe that's sustainable. One of the 3 was sold within the hour, the other 2 in less than 24 hours.

    Crazy.
     
  8. PaxsMom

    PaxsMom Mouseketeer

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    Figures it is "hot" when I go to make an offer..
     
  9. nalajms

    nalajms DIS Veteran

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    I was wondering how much those sold for. It seems like the prices have been going up on new listings. With closing costs and fees, there's not much savings buying resale.

    At some point BLT direct prices have to go down (which should drive the resale prices down), or VGF prices have to go way high (which would drive resale even higher :eek:).
     
  10. NoleFan

    NoleFan DIS Veteran

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    I agree that gap between resale & direct is getting smaller on some contracts especially small contract at the more popular resorts. It seemed like when the pricing of old resorts initially went up in Mid March to $130/pp, we saw a bigger gap in direct vs. resale pricing?? Now, it seems like the continued increased cost of resale contracts for some of the more popular resorts is shrinking the gap between resale vs. direct.
     
  11. agie65

    agie65 New Disney Fan DVC Gold

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    And OKW 25 pts several was listed for $90/pp, most of em sold don't know at what price, even if it cost $300 to close it will be whopping $102/pp.
     
  12. iluvthsgam

    iluvthsgam Mouseketeer DVC Gold

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    Looking at the historical pricing of buying direct and you see a consistent increase now up to $150 per point.

    The question is going to be, will resale prices be pulled up with it and buyers will be okay because it will still be a "good deal" compared to direct or will resale prices stay level or down for the next 5-10 years?

    At some point resale will go down as expiration approaches. But until then I am curious to see how the price action plays out.

    The other thing is that Disney, if it wanted to, could effectively set a floor price by using ROFR process to grab any contracts below a certain price, this raising offers higher so they don't get nabbed by Disney. There is quite a lot going on to alter the price.
     
  13. Missyrose

    Missyrose DIS Veteran

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    Disney doesn't have the cash to create a true floor, that would take ROFRing a lot of contracts.
     
  14. iluvthsgam

    iluvthsgam Mouseketeer DVC Gold

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    I agree with you for a true floor. But they don't need to ROFR every contract to create the appearance of a floor. As long as they ROFR enough contracts at a certain price point, the brokers will start telling people "if it is too low Disney will ROFR it, so bid higher!" Then you see posts on here of lower contracts that got ROFR'd by Disney as well. They can't get everyone, but people will see that and not want to take the risk and bump the offer price up.

    Just look what has happened in the last 3-5 months with the ROFR activity and price increases. Not saying that is the sole reason, but I think there is an appearance that right now, a low contract would be ROFR'd by Disney.
     
  15. stefanospops

    stefanospops DIS Veteran

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    I "bought into" DVC when they launched BLT so I have no idea what happened then. I'm curious if Disney ROFR'd more contract just prior to and during a new launch. Not the GF is selling are they trying to bring resale values up to help prospective buyers justify the purchase? I mean, if I were a DVC salesperson I would likely say something like, "Disney buys many contract to keep the resale price rising too. The gap is so close between the two, so is it really worth it to give up perks to save a few hundred dollars?"

    Again, I'm not saying they are doing this, just wondering if this happened prior to AKL or BLT.
     
  16. kedkin

    kedkin Earning My Ears

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    I thought that with the selling of VGF might drop the prices in resale thinking that more people might buy direct for VGF leaving a lot of resale contracts on the market and even people dumping contracts to buy VGF, but clearly that isn't the case.
     
  17. ELMC

    ELMC DIS Veteran

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    While I agree with the general thoughts on this thread, I don't think that these examples are indicative of how hot the market is or isn't. There is a whole group of buyers hiding in the shadows that are looking for 25 and 50 point contracts at just about all the resorts. Because those contracts come up so infrequently, many of them have been waiting a year or more to find what they need. When the contract comes up, especially if it's the right use year, it sells immediately almost regardless of price.

    One would think. The problem is most of these exchanges involve giving up X number of points at the current resort to buy 1/3 X points at VGF where the number of points required per stay is 50% higher.

    Or, put another way, you'd have to sell a 200 point contract at SSR to get a 75 point contract at VGF and you would end up getting 3 nights a year instead of 10. It's just not a good value proposition, so I really don't think it's happening that much.
     
  18. gibbow

    gibbow Mouseketeer

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    With a new job starting in a Month, I'm very interested in purchasing into the DVC. I've rented points here earlier this year and absolutely loved the experience. With the gap between resale and direct pay closing, I too am questioning whether it would be worth it going directly to be able to use points elsewhere.

    I've been checking in on the resale prices just waiting to save enough for a down payment without living too tightly elsewise...

    Super excited, I wish I would be able to afford buying in at the VGF for a reasonable amount of points, or to wait until the Poly gets a DVC addition...

    So much to think about... but I firmly believe I'll be buying in one way or another :)
     
  19. NoleFan

    NoleFan DIS Veteran

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    Although the gap on some resale contracts may be slimmer than others (popular resorts, small, loaded contracts typically), I think resale still can be a significant savings. I believe that the best value for using DVC points is to use them at a DVC resort. I would further investigate whether using your points elsewhere would be of value to your individual situation. For example, some say it is better to rent their points & use the $$ to pay for a cruise instead of using points to pay for cruise. I bought resale with the sole intention of using them at DVC resorts & the savings vs. direct pricing was significant. Better decision for my situation. This board is a great source of info. so research away & good luck!
     
  20. gibbow

    gibbow Mouseketeer

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    Thank you! I have read here in a few places it is financially wiser to book a cruise with $$ over points, and have heard many people including CM's that they think the convenience is worth it :confused3 (thank you to those who took the time to calculate it :hug: )

    On my trip to SSR this May, while walking through the GF after Narcoossee's we ran into a DVC information table, decided to ask a small simple question and we ended up speaking with the lady for over an hour, most pleasant. The next day we had an open house scheduled, and we were very much turned off by the demeanor and attitude of the sales rep.

    All of the other CM's (are they still CM's if they work through the DVC?) were so pleasant tho!

    With the economy rising, hopefully more people may sell smaller contracts which I could perhaps pounce upon :) :mickeyjum
     
  21. Kidanifan08

    Kidanifan08 DIS Veteran

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    Got an e-mail blast at 2:04 about a Sept BWV 50 pt with 2014 points and beyond. $90/pt!

    Just got a f/u e-mail at 2:35 that the contract was sold for asking price.

    Yep . . . it's a sellers market, alright!
     
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