Why are there so many resales out there?

[doubletrouble_vb]

I recently closed on a DVC direct purchase. I see now there are many resales out there. I don't regret buying from DVC because I figured I would need a $65 price to make it worth my while to bother going outside Disney.

My question is...why are there suddenly so many? Is this normal for the summer? It makes me worry that DVC may be finally going to way of all timeshares in price.

 

[PamOKW]

I'm not sure that there are "so many" or that there has been any dramatic increase. On the Timeshare board I see about 20. I'm not sure what DVC membership is at this point but it is somewhere above 50,000. Seems like a very small percentage.

Reasons why? Well, OKW is approaching 10 years of ownership and except for VWL the others are at over 5 years. Death, divorce, and other lifestyle changes are usually the reasons for sales. 5+ years are when these start to kick-in. Also, some folks may discover after a few years of ownership that it isn't right for them and take this opportunity to sell at what may well be a profit. Some people are also starting to feel a financial pinch with job layoffs and investment losses. DVC would probably be among the first expenses to elminate in that situation.

DVC continues to raise the prices and the resale prices continue to be higher than what was paid. I don't see any reason to feel anything is taking a downturn.

 

[JillU-DVC]

One other reason is that the economy is definitely slowing down, people may need the money that they're paying in monthly mortgage payments to DVC to pay for other things.

People may also want to take advantage of the higher price per point to make some money - I know that I bought a year ago for $55/point; if I wanted to make some money quickly, I could sell my DVD for at least $65.

I'm not going to do that, but those are a couple reasons why the resale market seems to have more available than it has over the last couple months.

 

[dbkelly]

Don't worry I just bought into DVC also. The previous owners of my points have purchased a residence in Orlando, so that could very well be the reason why they are selling. Peoples lives change all the time. I would like to think that I am going to own my points until 2042, but I don't think that will be the case. The only time I foresee a mad dash to unload DVC is probably going to happen sometime between 2032 and 2042. Since everyone will be loosing ownership in 2042, people may try to get some sort of return on their investment before it is gone. At some point, the resale values will decrease tremendously until a resale market will no longer exist. However, this event would probably increase the rental value of the points near the end.

It was a wise investment!

 

[Dumbo]

There are probably a lot of resales now in the summer because people are borrowing points to take that one last Disney vacation before they sell their DVC. A sample add is below. Personaly I think you would have to be nuts to pay $70. a point and only get 8 points next Feb.

Old Key West
Points 150
Use Year February
Banked Points 0
Borrowed Points 142
Price $10,500.00

Notes: All but 8 points have been borrowed from 2002, but you may borrow all 150 from 2003 on 2/1/02-$70/pt
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Dumbo

 

[RobDoc]

Granted, that resale will have a broker's commision to pay, but no OKW purchase (or BWV for that matter) sold thru DVC for more than $68. The $70 listing may help the seller to recoup some broker expenses, but as Dumbo pointed out, the borrowed points are certainly a factor. Especially when the new owner wil pay dues on the borrowed points next Jan ....and the following Jan!

This really demonstrates the need to examine the true costs of a resale purchase and include all costs in any offer made to purchase.

 

[mickeyc]

The resale market has it ups and downs. Since September when I first learned of the boards, the resale marke was more prevalent. Approximately one month ago I recall seeing only one resale available with an inventory of about six, the others had sale pending. Bottom line... 10 months to one year ago the resale market had better deals at reasonable prices. The resale market has been hot. Most of the inventory seems to sell even at the higher prices. It is my understanding that some resales don't even get listed because there are buyers on a waiting list. Anyway the inventory and prices were better months ago. It is all in the timing. For those still looking good luck--keep in mind the number of points available.

 

[BobH]

I am not so sure their will be a mad dash for the exits in the years preceding 2042. If Disney continues to be a creative an economically viable company I wouldn't be suprise to see them offer some type of rollover deal where current owners were enticed to buy in again. At any rate this will be my kids decision not mine.

 

[geffric]

I agree - my kids will worry about 2042. Not my problem.

There is always people buying and selling in any real estate market.
But if I had to venture a guess-- some of , those of us who purchased when we got free passes during our stay, maybe be selling now that they have to pay for passes.

Just my thoughts