DVC Point costs and the Future

[zzotto]

A few days (weeks?) ago, I was reading a thread about what the future holds for the price of points, price on the resale market, what will happen to the price of points when, and if, Disney stops building resorts, what will happen to the price as we get nearer and nearer to the end of the (2042?), etc., etc..

Some interesting points all - but - I can only remember one thing from my college economics class. Supply and Demand!!!

I think if Disney stops building DVC resorts, and the farther it is away from the end, the more $$$ our points will be worth, assuming there are people in the market for them! The smaller the pool of points, the more people who want them - and bingo - up goes the value.

Of course the reverse is true too! The more resorts, the less people compete for them and then the price is lower.

Time has a lot to do with it, the end date for the new resorts (like SSR is now 12 years longer), etc., etc.

Any economists out there that can give me a better theory and explanation? Accountants? Financial Planners?

Just have been thinking about it!

 

[Dean]

You must also remember that one can buy great resorts in Orlando off site for a fraction of DVC. Also, the DVC is a timeshare and as such there are realities. Most people are not going out to look at buying a timeshare, even if it's DVC. I do think it's true that there will always be a market for DVC as long as it offers a price advantage for a quality WDW room. I'd say it would have to make rooms about half rack rates or 75% discount rates to keep the price propped up. Like with other timeshares, the prices would become far more variable. Some would be able to buy for a song, maybe 10¢ on the dollar while others would hold out for full retail type pricing with a lot of inbetweens.