Why Now is a Great Time to Buy a DVC Resale Contract0 Comments
Timing for when to join or add-on with Disney Vacation Club will always be most influenced by someone’s current vacation needs and budget, but for those potentially in the market right now, the timing is great for two main reasons:
1. DVC Resale prices have experienced a small drop in the last 6 months, but still remain higher than they were just two years ago.
Since, March ’16 the median drop across all DVC resorts has been just over 4%. In the last 6 months, many factors should have contributed to a drop in price such as an historical all-time high in DVC Resale inventory, an election year in the United States, restrictions to “incidental benefits” and seasonality. Despite all these factors, the fact that the drop has been this small and that the prices are still higher than just two years ago speaks a lot to the value of Disney Vacation Club and the value of buying resale. Additionally, the price drop while not huge is certainly a nice financial incentive for any buyer to purchase a DVC resale contract while prices are still dipped from their previous highs. Below is a chart showing the average listing price for all DVC resorts from Sep. ’14, Mar. ’16 and Sep. ’16.
|Resort||Average Cost Per Point|
|Sep. ’14||Mar. ’16||Sep. ’16|
|Bay Lake Tower||$104||$121||$116|
|Old Key West||$71||$84||$80|
|* Average cost per point based on average asking price across resale market from Sep. ’14, Mar. ’16 and Sep. ’16 according to listings on disneydvcresale.com|
2. DVC Resale inventory is close to a record high.
For example, in September of 2016 there have consistently been over 200 Saratoga Springs listings on the market, and over 100 Bay Lake Tower and Old Key West listings on the market. Despite a strong sales pace, which is 17% above prior year for DVC Resale Market, inventory numbers remain high across the market. This is good news for buyers while it lasts, as it provides them with an increased selection, and can sometimes allow for more dollars negotiated off the price. Selection is important when considering Disney Vacation Club as some Members may want to only consider their existing Use Year and thus eliminate roughly 7/8’s of the market. Selection gets even more critical when considering the resort choices and contract sizes. Having perhaps several contracts that meet a buyer’s criteria versus just one or two can sometimes allow the buyer the luxury being a little more aggressive with their offers in attempting to get the best price possible. Regardless, buyers still need to be aware of Disney’s right of first refusal, because as the deal gets more attractive for the buyer it also gets more attractive for Disney stepping in and becoming the buyer.