DVC Prices Plummet!

[Stevegriswold]

The Sky is falling!

Below are just a few recent resales that passed ROFR from the ROFR list here on the DIS.

Animal Kingdom for $81.25 a point and you pay NO Closing Costs.
Vero Beach for $55 a point for a nice small add on 60 point contract. WOW

What's Disney's latest DVC deals? $104 a point? Maybe $94 a point with a promotional offer.

How would you like to be the guy that just bought VB from DVC and then find out it's selling for only $55 if you can wait a month or two for the paperwork.

I'm the guy that just bought OKW at $75 and BCV $88 resales 10 months ago and those were great deals and already those numbers are the norm for resales.

How Low can they go?
What do you think AKV will be selling at for resale next year?

Recent Resales from DVC ROFR thread:

Nigel8600------------ 160 AKV (Apr) $81.25, 160 banked '07 pts, seller pays closing and mf (sub 5/9, passed 5/30) GMAC

Barrister--------------- 400 BWV (Dec) $76, 400 banked '07 pts, all '08 pts, buyer pays closing and '08 mf (passed 7/17)

TenThousandVolts---- 100 HHI (Jun) $67, no '07 pts, all '08 pts, seller pays closing, buyer pays '08 mf (passed 4/29) GMAC
a37027-------------- 30 HHI (Feb) $67, no '08 pts, all '09 pts, buyer pays closing, seller pays '08 mf (sub 5/13, passed 5/23) members TSS

snackyx--------------- 150 OKW (Feb) $70, all '08 points available, buyer paid closing costs, split MF (sub 5/25, passed 6/9)
jjgraff30------------- 25 OKW (Apr) $70, no '08 pts, all '09 pts, buyer pays closing, seller pays '08 mf (sub 7/18, passed 7/28)


njsquirrel------------ 175 SSR (Dec) $75, all '08 pts, 108 borrowed '09 pts, 64 '09 pts, seller pays closing (passed 7/25) non-member
snichols1219-------- 200 SSR (Dec) $75, 243 pts in hold, 102 banked '07 pts, all '08 pts, buyer pays closing and '08 mf (passed 7/24) non-members

bbowers------------ 60 VB (Feb) $55, no '08 or '09 pts, seller pays '09 mf (sub 6/14, passed 6/30)

Steve

 

[lugnut33]

Sky is not falling, but obviously DVC has had a flood of resales and that's why you see the prices falling. They have a big inventory and got to clear them out, without taking a hit to their bottom line by buying the contracts through ROFR.

Nice thing is, those cheaper prices allowed me to buy my first 120 pt contract at SSR for $80 p/pt (I paid closing, seller is paying 08 MF).

 

[PrincessNewsie]

It makes it affordable for me.

 

[tvwalsh]

I sold several contracts about a year ago. I have two more listed now for 6 or 7 dollars less than the per point prices I actually got from my sales last year.

 

[jimmytammy]

IMO, it is a reflection of the times. And times will get better, as they always do. It is a buyers market when it comes to real estate, and that is probably somewhat true in this as well.

 

[dianeschlicht]

IMO, it is a reflection of the times. And times will get better, as they always do. It is a buyers market when it comes to real estate, and that is probably somewhat true in this as well.

That was my thought as well.

 

[CarolMN]

IMO, it is a reflection of the times. And times will get better, as they always do. It is a buyers market when it comes to real estate, and that is probably somewhat true in this as well.

That was my thought as well.

I agree.

DVC is "on sale" for those who can afford to buy - just like homes in many areas of the U.S. and stocks. Doesn't significantly impact those who are "in it for the long term".

 

[moredisneyplease]

It just reflects our current economic status......simple as that. I dont think it makes DVC any less amazing than it is, it just makes it more affordable for those that want to by resale!

 

[carlbarry]

Look on ebay for non-DVC timeshares, i.e., those WITHOUT ROFR, and REALLY see the bottom fall out. TImeshares that the sponsor will sell you for $25,000-$75,000 are selling for $2.25 (I kid you not--128,000 Wyndham points) or other penny-on-the-dollar amounts.
However, as someone looking to buy into DVC for over a year, I think this will finally push me over the edge!

 

[cogero]

I agree.

DVC is "on sale" for those who can afford to buy - just like homes in many areas of the U.S. and stocks. Doesn't significantly impact those who are "in it for the long term".

Yep this was the right time for us to buy and we had the money waiting here to buy. I bought my first through Disney but may now buy a resale but will watch the market a bit more. Just remember there is only so much real estate out there.

Also I think it depends on what your position in life is. My DH is in a secure industry. I work for family and we are in a secure business, unfortunately not everyone has that stability right now.

 

[carlbarry]

The problem for those "in it for the long term" is that they still have to pay a hefty MF. Many people are cutting back, and MF would be a great place to start. By selling they, 1. save the MF, 2. get much needed cash, 3. save on travel expenses

 

[littlestar]

I agree. The economy has been pretty scary. We know lots of people that never know if they will have a job from one day to the next. It's nothing to go into work and see people being escorted out the door with a pink slip because "we had a bad quarter." It sure doesn't make me feel good about spending any extra money on a luxury item. Our 401k's are literally on a roller coaster ride from day to day.

 

[Gr82be]

I would say it's a buyers market. This will probably go on for the next couple of months. When people get use to paying $4.00 a gallon for gas and the airlines get there act together on prices & policies, those people that bought those contracts are going to be the real winners. Right now Disney might not have the interest in those contracts. People are holding off on spending, right now.

 

[TenThousandVolts]

It is a buyers market and I AM shopping! I really wanted BLT but the resales are just too sweet right now.

 

[larrytau]

It is a buyers market and I AM shopping! I really wanted BLT but the resales are just too sweet right now.

I wonder what will happen in this Buyers market when BLT actually goes on sale. Why buy the new car at the very high price when there are all these last year's models available at these "sweet" prices?? Sure, you will have those that really like the location, but where will the masses buy at?

Maybe another reason for the "delay" in announcing?

 

[bgraham34]

It just reflects our current economic status......simple as that. I dont think it makes DVC any less amazing than it is, it just makes it more affordable for those that want to by resale!

I agree 100%

I got a 50 point contract as VWL becuase of it at 81.

 

[Stevegriswold]

I would say it's a buyers market. This will probably go on for the next couple of months. When people get use to paying $4.00 a gallon for gas and the airlines get there act together on prices & policies, those people that bought those contracts are going to be the real winners. Right now Disney might not have the interest in those contracts. People are holding off on spending, right now.

my crystal ball says these price will continue to go down on resales until March 2010. Disney is just now starting to cut back fantasmlc and others shows. Disney will continue to cut and we are just at the beginning of a recession. 2009 will be a difficult year for jobs, fuel prices, and the economy overall. Things will not start to improve until mid 2010 and slowly at that.

Steve

 

[BWV Dreamin]

The Sky is falling!

Below are just a few recent resales that passed ROFR from the ROFR list here on the DIS.

Animal Kingdom for $81.25 a point and you pay NO Closing Costs.
Vero Beach for $55 a point for a nice small add on 60 point contract. WOW

What's Disney's latest DVC deals? $104 a point? Maybe $94 a point with a promotional offer.

How would you like to be the guy that just bought VB from DVC and then find out it's selling for only $55 if you can wait a month or two for the paperwork.

I'm the guy that just bought OKW at $75 and BCV $88 resales 10 months ago and those were great deals and already those numbers are the norm for resales.

How Low can they go?
What do you think AKV will be selling at for resale next year?

Recent Resales from DVC ROFR thread:

Nigel8600------------ 160 AKV (Apr) $81.25, 160 banked '07 pts, seller pays closing and mf (sub 5/9, passed 5/30) GMAC

Barrister--------------- 400 BWV (Dec) $76, 400 banked '07 pts, all '08 pts, buyer pays closing and '08 mf (passed 7/17)

TenThousandVolts---- 100 HHI (Jun) $67, no '07 pts, all '08 pts, seller pays closing, buyer pays '08 mf (passed 4/29) GMAC
a37027-------------- 30 HHI (Feb) $67, no '08 pts, all '09 pts, buyer pays closing, seller pays '08 mf (sub 5/13, passed 5/23) members TSS

snackyx--------------- 150 OKW (Feb) $70, all '08 points available, buyer paid closing costs, split MF (sub 5/25, passed 6/9)
jjgraff30------------- 25 OKW (Apr) $70, no '08 pts, all '09 pts, buyer pays closing, seller pays '08 mf (sub 7/18, passed 7/28)


njsquirrel------------ 175 SSR (Dec) $75, all '08 pts, 108 borrowed '09 pts, 64 '09 pts, seller pays closing (passed 7/25) non-member
snichols1219-------- 200 SSR (Dec) $75, 243 pts in hold, 102 banked '07 pts, all '08 pts, buyer pays closing and '08 mf (passed 7/24) non-members

bbowers------------ 60 VB (Feb) $55, no '08 or '09 pts, seller pays '09 mf (sub 6/14, passed 6/30)

Steve

I think there are some variables in your post worth mentioning. First, the BWV resales is for 400/pts. That is a very large contract, and they have been selling at low prices, nothing new here. Secondly, the VB contract is stripped. That will generate a lower price, nothing new here. SSR contract has alot of pts. in holding, basically worthless. Actually, that isn't that bad of a sales price considering. The OKW contracts are 2042 expiration. Now that 2057's are out, we are starting to see the gap between these two contracts. Your examples really don't reflect any dramatic downturn. Let me see a BCV at 100 pts. with prior years banked pts. for $85/ pt. Then I might think differently.

 

[LIFERBABE]

I was looking at resales yesterday and I still think the prices are pretty good for what I paid.

I could price my contracts anywhere from $5 to $10 less than the listed prices and still come out ahead.

I dont think the sky is falling at all. For those that got in on the tail end and paid full price, maybe, but my DVC portfolio is holding on better than my 401K!

Timeshares are not a break even endeavor, so I am happy with my current values.

P.S. Do you work for Fox News?

 

[kimberh]

I think $81.25 for 160 AKV with 160 07 banked points is a pretty good price. I would sure loved to have that one.

I love Fox news! What's that got to do with Disney?????