What Recent History Indicates About the Timeshare Market Now and in the Future for Potential Buyers
How much is your timeshare going to be worth few years from now? Learn how to price your timeshare in the midst of an economic recession. The national trend in the United States is showing a definite upward soar in the demand for affordable timeshare properties.
The concept of timeshares originated in 1960, when a ski resort owner in the French Alps was able to convince people to buy ownership shares in his resort. This concept turned out to be a success and an industry was born, one that has continued to thrive and grow. Since that time, the economy has taken a toll on virtually every area of the economy, the timeshare industry being no exception. However, recent data has been encouraging for individuals connected to this field.
From 2006 thru 2009, the timeshare industry experienced an overall increase in average prices. 2006 and 2007 saw a 23 percent price increase even in the midst of an oncoming recession, which hit around the end of 2007. 2008 saw an 11 percent price decrease, but overall, the median pricing of all timeshares for this time period increased by 8 percent.
One of the first signs of a trend toward economic recovery is often an increase in discretionary consumer spending. The key is the data regarding the purchase of large ticket and luxury items. The timeshare industry, therefore, can be an early indicator of economic trends.
The national trend in the United States is showing a definite upward soar in the demand for affordable timeshare properties. In addition, there is a global trend in the marketplace that indicates an increasing desire for luxury resort locations. This is especially true in the executive category.
The timeshare market is clearly beginning to rebound, but it contains plenty of inventory due to the previous economic slowdown. The details of future trends will depend to some degree on the specific types of timeshares. For example, some timeshares are deeded ownership, which means there is a recorded deed for the property in the county in which the timeshare is located. On the other hand, RTU, or right to use, timeshares give the holder use of occupancy rights but no actual ownership rights. Finally points-based timeshares are based on a value system. The consumer buys a share or points in a vacation club membership instead of buying either ownership or a right to use. The point system attaches a value to the points in the form of the length of stay, the type of accommodations and the season of the year.
Since many timeshare owners are interested in selling due to the former economic slowdown, many industry experts believe that this is an ideal time to buy. The overall climate is pointing to a market ripe for resale. While many sellers may not know what their shares are really worth, what they do know is that they want out from under the burden of ownership.
Since many prices are still low, but trends point to values increasing, and since inventory is plentiful, opportunistic buyers currently have the opportunity to secure some incredible deals. Better yet, because of the current climate, plenty of resale financing programs are ready and willing to assist qualified purchasers to ensure that the process goes smoothly.
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