Is it just me or is the resale market looking a little soft right now

[jaysue]

I have only been watching resale prices for about 2-3 months now and it seems to me that the pricing has been a little softer lately - down maybe $2-$4 per point or maybe it is just my imagination...

Comments please (and not on my imagination )

Thanks
jaysue

 

[jimmytammy]

I have not been watching the resale market that closely but I take your word for it. I know that the housing industry is slower than it has been in the past few yrs. Im speaking from a home builders perspective. The rental market is sluggish also. So maybe in reflection, the resale market may be affected by some of the same reasons. The stock market is taking a much needed upward climb in past few weeks so we all hopefully will begin to see some turnaround in the economy soon.

 

[Dean]

I don't think it's soft, rather that there was an aberant blip upward in resales with all the DVC buy backs. I think we're seeing what I predicted at the time the buy backs went through through the roof, that things would settle down and the prices would come back down somewhat. Also the economy has been slow for some time though it's starting to reboun.

 

[TroyWDW]

For the past year, resale transactions have been up greatly over historical levels. On average, there has been a sustained 100% increase (or doubling) of the number of completed resales for the past 12 months. The entire market has increased with the DVD Inc. ROFR's playing a minor role, but not insignificant.

There are probably many factors contributing to this increase: economic conditions, number of total contracts, aging of contracts, etc.

Pricing is a different issue. DVD Inc. artificially keeps the price high even if there is a supply/demand bubble. My perception is that the list of properties at your favorite resellers is getting longer and the average listing time is longer (this is a guess, no data).

The resale brokers have had a great 12 months. DVC is having one of their slowest years in sales. We'll see what the summer season holds for them. So, I expect the resale brokers are all driving new cars, and the DVC salespeople are extending their car leases another year.

Troy

 

[disneyberry]

hi jaysue, i've been watching the market since February, and it doesn't really look like pricing has dropped that much, that is, as far as the prices on the brokers' websites go.

what probably has dropped is the level that people are getting past ROFR. it was at a high of $72+ at one point but now seems to have gone down to $70 or even less. but i believe there have been some buybacks at $68 for the WDW properties.

what i definitely have seen though, is a really big increase in the number of listings! looks like a lot of people are selling!

 

[CarolA]

I don't know. The contract I just put an offer on was on the market less then 12 hours before I snapped it up.

THe huge contracts do stay longer. But small ones are going fast.