Yes, that part is correct. At 11 months from the first day of a given reservation only those who own at a given resort can make a reservation there. At 7 months from the same date, access opens to all
DVC members for the rest of the rooms available. There are many strategies for selecting a home resort, but the most common theme here would be to buy where you wouldn't mind staying in the event you are not able to find anything you like to trade into at 7 months.