Does real estate market affect DVC prices?

[yyzgurl]

I was just wondering, for those who have owned for a while now, do DVC prices rise and fall with the real estate market. Housing prices and DVC prices are very high at the moment. Should I expect the DVC resale prices to decrease when the real estate market falls?

 

[CarolA]

I don't think the general real estate market has much impact. What seems to keep prices rising is Disney's continual increases.

Now folks have speculated that if housing prices declined or interest rates go up then sales could slow and possibly prices drop since lots of folks finance via home equity.

 

[Happy Birthday Cat]

I think it does to a degree and CarolA touched on it. With housing values soaring, equity is built up. With that equity, people are buying DVC, especially the resales. If the housing markey crashes, then obviously not as many people will be able to use that equity to purchase anything, let alone a timeshare.

HBC

 

[RobDoc]

DVC prices have never gone any direction but UP for purchases thru Disney. There have been a couple of exceptions with the incentives offered at VB and HH at one time, but otherwise, prices have always increased over time.

With resales, since DVC effectively controls pricing thru ROFR, there has also been a steady increase with time. Again, since DVC has the ROFR option, there are indications that at some time resale pricing will be allowed to drop. (Consider the current resale pricing reports for VB - where some have gone thru in the low 60's). Even now, there seems to be a lack of consistency with what prices are being taken by ROFR at the various resorts. Some resorts are noticeably higher than others- some of that is the result of ROFR, some of it results from market conditions, although even those are likely tempered by knowledge of ROFR.

It will be interesting to watch resale pricing at the various resorts versus new purchase pricing in the next 5 years.

Stay tuned!

 

[yyzgurl]

Can Disney invoke their ROFR for the length of the contract? ie. 20 years from now, I want to sell my DVC contract, they will stay have the rofr for any offer that comes in?

 

[spiceycat]

for most timeshares it does appear to be the case.'

I brought a gulf front PCB timeshare a couple of years ago - $1,500 - next door (on both sides) are high rises condo going up - they start at $325,000 for a 1-bedroom and go up.

this was the price a few years ago - I am sure that it is more now.

 

[PamOKW]

Yes DVC has ROFR for the life of the contract.

The value of the dollar also plays a big part in selling DVC. Right now the UK market is on fire with folks taking advantage of the good exchange rate.

 

[SoCalKDG]

Hotel prices onsite would seem to be the most important aspect, IMHO. If rooms were to double in cost in the next 5 years, trust me DVC resales would be more expensive.