Economy has been on a tear the last 5 years. I think that is part of the reason too.
I agree it's the economy. I have noticed coming from UK that USA prices tend to quickly go up in most things when the economy is good, and come down when it's not so good. UK seems a bit more stable on its pricing, economy good or bad.
It was more like being pecked to death by a duck.
DVC were still exercising contracts but only at VGC from what I could tell. In 2010 I had a VGC 300 point contract for $15000 that got taken by ROFR. DVC did not buy any WDW contracts though. I had 160 point HH contract fully loaded for $5k pass, SSR fully loaded 200 pointer for $8k pass and there were a lot of great deals to be had 2010-2011.Well, last time the economy tanked, DVC did not lower prices - but they did stop exercising ROFR on a lot of contracts, and I believe offered some nice incentives (like free cruises - I think free cruises were happening around then). When they stopped exercising ROFR, that meant that the resale market got really cheap. For Disney, they want the cash - not exercising ROFR gives them cash. They are stuck with what they are selling and building, but its long term capital, and they push back future expansion until the economy recovers.
When the market tanked in 2001 after 9/11 DVC developer costs tanked as well. In 2008 they stopped exercising ROFR BUT the resale world also tanked. It happens. I hope it doesn't happen again because all my timeshares (Disney Vacation Club, Marriotts and others) went down substantially in value.Well, last time the economy tanked, DVC did not lower prices - but they did stop exercising ROFR on a lot of contracts, and I believe offered some nice incentives (like free cruises - I think free cruises were happening around then). When they stopped exercising ROFR, that meant that the resale market got really cheap. For Disney, they want the cash - not exercising ROFR gives them cash. They are stuck with what they are selling and building, but its long term capital, and they push back future expansion until the economy recovers.
I agree with this. We are doing two cash only stays this summer and I asked DH if it made sense to buy more points instead.I'll add another cent to the pile. DVC is very attractive now with the recent increases of WDW Hotel pricing. We had a family suite at AoA in 2015, and it was around 330, maybe 350 a night during Spring season. I think this was the Same room is pushing almost 500 a night right now.
After that trip we learned about renting DVC points. For about the same price we could get a 1 bedroom at BLT and have a washer/dryer, kitchen, and be closer to MK. We rented DVC for our 2016 trip and we loved it. We ended up purchasing last summer.
Someone else said it on here, but DVC is somewhat of a hedge against the inflation of WDW hotel prices, but I do find a lot of value in the amenities in the 1+ bedroom villas.
I would say the hotel price increases have fueled a good portion of the DVC demand. More people renting points, leading to more people wanting to buy (especially resale), high demand, shorter supply, increased prices.