DVC Resale Pricing Support

[BWV Dreamin]

Originally Posted by OttawaWendy

It is my impression that BWV has actually fallen quite a lot recently in percentage terms. When we were first looking (I think in 2006), BWV was up with BCV and VWL, but it is significantly lower now.

What has happened is that prices have fallen in relationship to the number of contracts on the market. I have already seen an uptick for BWV as there has been a run on BWV contracts. BCV has fallen dramatically this past 2 years. Can be had in the upper 60's now. What I think will stabalize the resales market is again, the decrease in overall contracts available for purchase.

[DougEMG]

One of the big thing that affects resale prices is if the seller has a loan on the contract. For older resorts like OKW and BWV the original owners probably don't have loans, are now older and probably aren't interested in WDW anymore and have got their money's worth out of the resort, and given the low prices they paided back in the 90's they don't have to sell for that much to get all their money out. So for them selling in the $50-$60 range is still a good deal regardless of what the current direct pricing is.

While it's not unusual for a SSR, AKV or BLT seller to need $X because that is what their loan is for.

[OldGrizzly57]

There won't be a "floor" until resale contracts dry up or Disney decides to excercise ROFR at higher levels. Direct pricing historically has had little impact on resale pricing.

Griz

[tomandrobin]

The resale price floor will be continuously be pushed down to zero. Its not zero yet, but it will be one day as contracts get closer and closer to the end date.

[BWV Dreamin]

Originally Posted by OldGrizzly57

There won't be a "floor" until resale contracts dry up or Disney decides to excercise ROFR at higher levels. Direct pricing historically has had little impact on resale pricing.

Griz

Is already happening with OKW.

[BWV Dreamin]

Originally Posted by tomandrobin

The resale price floor will be continuously be pushed down to zero. Its not zero yet, but it will be one day as contracts get closer and closer to the end date.

I think that takes time to happen. Not free fall prices which have occurred over the last 3 year, but slow dollar adjustments. As the economy stabilizes so will the resale market.

[mouse junkie]

Originally Posted by bdoleary

Another factor is the fact that many of the resorts will expire in 2042 - this should cause their value to continue to depreciate - as their Use Years are used up.

That's what I'm holding on to 'cause this girl can't afford to buy in the near future. Hoping there are still some out there that are lower as their contracts are used up down the road!

[ParentsOfFour]

Originally Posted by OttawaWendy

It is my impression that BWV has actually fallen quite a lot recently in percentage terms. When we were first looking (I think in 2006), BWV was up with BCV and VWL, but it is significantly lower now.

I haven't been watching for long but BWV seems to be up about $5 per point from a couple of months ago. BWVs are going quickly on the most popular reseller sites.

[ParentsOfFour]

Originally Posted by OldGrizzly57

There won't be a "floor" until resale contracts dry up or Disney decides to excercise ROFR at higher levels. Direct pricing historically has had little impact on resale pricing.

Griz

For the sake of discussion, let's assume that Disney adds DVC to the Polynesian. Where does DVC go after that?

I ask because I assume at some point, there won't be any good locations left for DVC to expand. At that point, does it make sense for Disney to be much more agressive with ROFR, knowing they can buy at price X and then resell the same contract for price Y, tacking on another 15 or 20 years to increase its value?

[jedwards]

Originally Posted by ParentsOfFour

I haven't been watching for long but BWV seems to be up about $5 per point from a couple of months ago. BWVs are going quickly on the most popular reseller sites.

Someone just posted on the ROFR website that they paid $55 pp for BWV.