Cost of Resale Points!!

[boxer]

I have bought and sold a few DVC contracts, and more recently purchased BWV back in 2016 (and have had it since). I was just playing around today and was completely dumbfounded with the crazy costs of some of these contracts!!! I know I got a deal back in 2016 ($75/point for 170 points), but my god have the prices gone crazy!!! I bought a BLT contract back in like 2014 for $88/PT, and I see them now selling for $130++/PT!!! Even my BWV could sell for over $120/PT from what I'm seeing today.

What happened that the market took off like that? I kinda got out of the DVC buying/selling game when they changed the Perk offer, as I figured the points would come down in price. I can't believe not only did they not lose value, but they went UP alot!!!

 

[supersnoop]

The economy, direct pricing increases, and new attractions at the parks all play a role in the market.

 

[Mikey15]

Economy is a big part of it. In 2018 the US has full employment, the global economy is strong, we're ~9 years into a stock market recovery, and people generally have a lot of dollars that they're willing to spend. So attendance is up at Disney, and despite increasing prices for accommodations, people are still coming and paying it.

So that's the macroeconomics of it. On the micro- side, Disney's rack-rate resort stays are expensive and continually rising. BoardWalk Inn or Contemporary are over $400/night "on sale"... regular price is $500+. Compare that to BWV/BLT studios and the DVC pricing is a "bargain" that many more people are going to consider. Breakeven at $130/point+$7/yr fees is around 5 years of annual trips compared to "sale" prices, and even less compared to regular pricing, and the contracts still have resale value. Of course, not everyone goes to Disney every year or stays Deluxe every year if they do, but of the ones that do, there's "savings" to be had by bidding up resale contracts.

 

[skippytx]

Things took off in the last 2 years. We first starting thinking about DVC in fall of 2016, and BLT was around 110/pt resale at that time. Didn't purchase resale until July 2017 and paid 125/pt for a perfect contract. Was originally grumpy about it, but in hindsight it was a good move. New listings are all 140+ right now.

Like others have said
- economy stronger - built up demand from folks that have been putting expensive dis trips on hold, more people can afford to go. (or are willing to spend the money now, I know I put off big ticket items during times of uncertainty)

- rack rates going through the roof. We had an AoA family suite in Feb 2015 for about 350 a night or so. That same room is 550 dollars a night now for Texas spring break week. We rented DVC points in Mar 2016 and that sold us. We realized we could buy into DVC, have a better location, and better accommodations for the same money.

- Direct pricing increases - DVC charging more, so resale sellers can charge more. Buyers don't have a choice but to pay the increased cost if they want the points

- Location premium. - Some of the biggest increases have been properties with superior locations. Boardwalk and Beach Club have probably seen the biggest spike over the last 2 years (especially considering shorter contract end date), because people want to stay in that location. The monorail resorts stay pretty strong. OKW, SSR, AKV have seen more modest increases but have still gone up. I remember a couple years ago paying 100pp for SSR or AKV was unthinkable. Now it's not unusual for a good contract. I just checked on AKV and saw some folks paying 115 a point. That might be the biggest percentage jump in the last 2 years.

I expect DVC demand to stay strong for at least the next 4 years as star wars land and the 50th anniversary come up. After that, who knows.

Unrelated to DVC resale prices though, the recent cost increases of a WDW vacation might start affecting people soon. I know we've already adjusted our plans for our next trip to attempt to control costs a bit. The biggest thing we cut down on was table service meals. Everything though has gone up quite a bit the last few years.

 

[kristenrice]

T

Unrelated to DVC resale prices though, the recent cost increases of a WDW vacation might start affecting people soon. I know we've already adjusted our plans for our next trip to attempt to control costs a bit. The biggest thing we cut down on was table service meals. Everything though has gone up quite a bit the last few years.

^^^THIS^^^

We have a trip planned in 2 weeks and another one planned next October using passes that we bought 2 years ago, before Disney added expiration dates. We typically only go for 5 nights so we would get 5-day park-hoppers. Well, those tickets alone will cost our family of 4 close to $2000 now. Sorry, but that's just not going to happen anymore. Between the cost of getting to Disney (about $1200 to drive and $1600 to fly...if we are lucky), we are at close to $3500 before we even have a bite to eat. That might sound like a decent deal, but let me put it in perspective...

We went to HHI on an 8-night trip. We had 3 nights on the road, rented a car to drive from Michigan and stayed 5 nights in a 1BR on our DVC points at HHI. This was over spring break, mind you, so it was not exactly an "off" season. We took a 5-hour off-shore fishing trip, went kayaking, rented bikes, ate out 3 times, cooked out, and basically did everything we wanted to do...we had a FANTASTIC vacation. Our total expenses for the 8 night trip was UNDER $2500 for the 4 of us.

So, needless to say, we are now looking to spend a lot more time at HHI instead of Disney World. We don't have any interest at all in Galaxy's Edge or the crowds that it will bring with it. The price hikes for everything are just out of control. I may still go down in the fall with a girlfriend or maybe with one of my daughters (now that they are getting older) for F&W, but the days of taking the family to WDW have come to an end. Disney has priced us out. We will be turning to HHI for our family vacations from now on. Hopefully, we can get lucky with the 7-month window so we can go a little more often. Right now, we own only 50 points at HHI which gets us our 5-night stay in a 1BR every 3 years. We also have 100 points at AKV so if we can get lucky at 7 months, we could buy some OTU points (15) and get a 2BR instead and go EVERY year!

 

[Cyberc1978]

Direct pricing have gone up so have Disney rentals and with the new and coming attractions pricing is only going one way.

If you believe in the latest rumors then an increase in the direct pricing is just around the corner - maybe it will happen around the same dates as the new pricing model on tickets goes into effect.

On top of that the OTU have just increased too and now costs $19 per point. Some owners have indicated that this will get them to buy more points in stead of relying on OTU points.

As everything else what goes up must come down at least at some point, question is just when and by how much.

 

[DizneyLizzy]

I will tell you that our decision to buy resale this past spring (something we've considered for years) was solidified by the recent price hikes in moderate and deluxe resorts at WDW. A room at a moderate for example, for when we usually travel (summer) can now cost as much as $300 per night. A room at the WL is well over $400, even discounted. The discounts just aren't what they used to be (for good reason, at least from Disney's perspective) For a few years we had been renting points from a friend, but now that all of her kids and stepkids are grown, she and her wife are planning to stockpile their points for cruises and ABD (even though she knows it's a "bad" use of points - she's owned since the mid 90s, so she doesn't care)

As long as the economy is strong, Disney will need to discount less and less, and all rooms will continue to rise in price. We're a family of 4 now, so we just don't feel like we have enough room in the values (which are still pretty decently priced for what they are IMO) So for us, locking in at today's rates, and having villas with kitchenettes or full kitchens is still a savings over time.

 

[Magical_Suitcase]

The economy, direct pricing increases, and new attractions at the parks all play a role in the market.

I agree, all are driving up the prices. Glad we bought back in yesteryear.

 

[longboard55]

Hilton just announced a very expensive new time share tower in Waikiki, we know marriott is killing it. Hate to say it but the old dog named timeshare that was beaten to pulp is making a big comeback. Demographics with a lot of fixed income retirees, a smarter buyer who knows the right properties, probably have something to do with it.

I still not sure timeshares are good for families with so many changes and expenses, but they are perfect for the retired who want to do the same thing for the next 25 years

 

[moericus]

I was lucky enough to get a small BLT contract in 2010. I can still remember the dummy agent telling me that prices would keep going down as the contract shortened over time.

I said, you don't understand... I can walk to the Magic Kingdom now. There is no price point on that. This is just a bad time to open a new property.

BLT is up $60/point since then. (pat on back)

 

[E2ME2]

I was lucky enough to get a small BLT contract in 2010. I can still remember the dummy agent telling me that prices would keep going down as the contract shortened over time.

I said, you don't understand... I can walk to the Magic Kingdom now. There is no price point on that. This is just a bad time to open a new property.

BLT is up $60/point since then. (pat on back)

We bought just after you, in 2011. We became empty-nesters that year, and we chose SSR based on the economics. They were discounting SSR at the time, and heavily selling BLT.
But SSR is up >$50/point since then, also.

 

[TheEnchantedRose]

Man, these low prices make me sad, as I am in the ROFR process for my first contract at the moment.

It's okay for now. I have to start somewhere.

 

[CaliAdventurer]

Rentals! That’s what got us hooked.