Current DVC Rental Prices

Is anyone else out there shocked that nothing seems to have changed in the DVC rental space (and resale for that matter)? I bought resale in 2017 and still get daily or weekly emails with resale listings and rental/transfer points available (glutton for punishment). I keep getting the same email with holding (!!) points that expire in August going for $14pp!! And all the transfers I’ve seen are $19 or $20 which I felt like was ridiculous even 2-3 months ago.

I just cannot imagine that the DVC rental market is still as robust as it was 3 months ago and I’m very surprised not to see prices falling yet! Just mindless speculation, but I would have thought there would be deals with people getting rid of unwanted points as soon as they could!

I have heard that some people think the resale prices might take a few months to fall.

I am going to guess that some people that are still looking to rent points might not have done a lot of research?

1 Like

True, I’m not overly familiar with how these types of things work. I just would think that if I was selling, I would probably want to just sell for whatever I could get now rather than wait for the unknown in the future. And if I was buying and did any amount of research, I would most certainly not be paying any extra money for banked points in this environment when availability is next to nil. All of which I would think would drop prices pretty quickly!

I’m personally just shocked that anyone thinks holding points are worth $14 in the best of times.

I think the point about seeking is that it will take time. It is not an immediate solution for a family that is struggling so there might be a delay in people unloading inventory.

I’m still looking at purchasing resale. I have seen some decline in prices, but nothing really significant yet. To me the economic outlook is deteriorating quickly, so I would think resale prices will slide in the coming 3-6 months. I’m going to wait to make any purchase decisions for that reason. I’m also curious about the long term consequences of this on the rental market, because it will affect how many points I purchase. Originally I wanted to buy more points than I needed with the idea that I could rent excess points or rent out points in years we decide to travel elsewhere. But if the rental market is significantly impacted, that strategy will change to purchasing slightly less points than I need.

It will take a minute for that market to respond to the current situation
As people face financial hardship, they will then look to offload

But I would anticipate that taking a month or more as people try to determine if they will be able to wait it out or not

Also people realize resale transactions take a pretty significant amount of time. If they are looking for immediate sources of income, selling would not be it; they would probably look to rent points to support maintaining the contract first.

Ya, I definitely get it. I was just thinking that if I was planning to sell before “all this” happened, that I would just do a quick price drop to get my contract sold and get closer to cash in hand as soon as possible before anything had the chance to go really sideways and/or the market flooded. I certainly wouldn’t be trying to get >$105pp for a large 250 point OKW contract that I saw!

2 Likes

I think people don’t have realistic perceptions of what their contract is worth.

We moved forward on our first (and main) contract in January 2020 with a final closing in early March 2020. Since then, my mom has been checking out resale prices and was slightly surprised to find that they were holding steady. She’s checking for an add-on at Boulder Ridge in particular and there are no more available now than there were when we were looking to purchase in Fall 2019 - Jan 2020.

1 Like

I am looking at buying AKL and have found the smaller contracts have softened to be more in line with what large contracts used to be. I think even if the overall economy improves, the prices may stay soft if Disney does not exercise right of first refusal in the same way they have in the past.

1 Like