Timeshare Sales And Prices Falling

[Lawlar]

According to CNBC Starwood reported that its timeshares are down 25% for the last quarter and timeshare prices are down 19%.

At the same time CNBC reported that 1/3 to 1/2 of all home sales are foreclosures (which drive home prices down).

Bummer.

 

[tomandrobin]

And yet Lagunamar just raised thier prices this month.

 

[tomandrobin]

At the same time CNBC reported that 1/3 to 1/2 of all home sales are foreclosures (which drive home prices down).

That is way too high of a number.

 

[clsmit]

From the Starwood quarterly results

Released 24 July 08. Empasis mine.

http://phx.corporate-ir.net/phoenix...vPXRlbmsmaXBhZ2U9NTc4ODY5NyZkb2M9MiZudW09NA==

Originated contract sales of vacation ownership intervals decreased 25.7% primarily due to the sellout of the Company’s Westin Ka’anapali Ocean Resort North in Maui and a decline in demand. The impact in Hawaii was partly offset by strong results in Orlando. The average price per vacation ownership unit sold decreased 19.1% to approximately $21,000, driven by a higher sales mix of lower priced biennial inventory in Hawaii. The number of contracts signed decreased 7.7% when compared to 2007.
Vacation ownership results were ahead of the Company’s expectations for the second quarter, primarily due to the favorable product mix of units sold, timing of expenses and other items that were realized earlier than expected. However, the Company now expects that full year 2008 results will be lower than prior guidance due to lower sales in Hawaii and of our fractional product, as well as lower financing income.
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Comments: Sounds like Princeville isn't selling as well, and people don't want to finance their timeshares. People are buying EOY if they do buy. If you're looking to requal some properties, this year might be a good time to have those negotiations, especially if you want to requal with a property in Hawaii.

 

[Twinkstarr]

That is way too high of a number.

The problem is that no one really keeps track of "forclosures" in the resale numbers.

A good friend of mine has been trying to sell their 2nd home in Vegas. He said that over half the homes on their street are forclosures.

 

[divenski]

2 EOY for price of equiv EY?

The comments about higher sales of EOY units made we wonder, will SW sell you 2 EOY at different properties, but price the EOY at 50% of each EY, instead of adding a premium, e.g. 60% of EY? This is something that Marriott started doing awhile ago, with I think, good success.

 

[Ken555]

EOY at 50% of EY was/is an option to encourage existing owners to purchase more.

 

[short]

Distressed sales

The problem is that no one really keeps track of "forclosures" in the resale numbers.

A good friend of mine has been trying to sell their 2nd home in Vegas. He said that over half the homes on their street are forclosures.

I think distressed property is a better description. We are closing(as buyer)on a purchase in our town in a couple weeks. It is a short pay from a mortgage company.

In a short pay the owner owns more than the property is worth. The owner must apply and be approved. If approved the mortgage company will sell the house and take less for the property. The owner frequently stays in the house until 10-14 days before closing.

We are still having the house inspected to determine how much repair or replacement we might need to make. I may post more on the story after I am sure we will close the deal.

Short

 

[Twinkstarr]

I think distressed property is a better description. We are closing(as buyer)on a purchase in our town in a couple weeks. It is a short pay from a mortgage company.

In a short pay the owner owns more than the property is worth. The owner must apply and be approved. If approved the mortgage company will sell the house and take less for the property. The owner frequently stays in the house until 10-14 days before closing.

We are still having the house inspected to determine how much repair or replacement we might need to make. I may post more on the story after I am sure we will close the deal.

Short

We looked at a distressed sale a few years ago, the owners trashed the place and this was in a $500,000+ house. Holes in the walls, every floor would have needed to be replaced(all carpet, let cats pee on everything, ruined the kitchen hardwood floors with water, looked like they threw stuff from 2nd floor and cracked about 90% of the marble floor in entry way).

Back then most of the banks in our area we're not willing to do a short sale, rather let them go to the sheriff's auction and buy them. Then they would resell it.

The above mentioned house, bank wouldn't move off the original price until it foreclosed. Eventually after they got the title they took $300,000 for it.

Personally I would want the owners out ASAP.

 

[DavidnRobin]

That is way too high of a number.

Stockton CA has the highest forclosure rate at 1/25

"Stockton had the highest foreclosure rate nationwide in the second quarter with one in every 25 households receiving a foreclosure filing"

http://www.bizjournals.com/eastbay/stories/2008/07/21/daily76.html

Luckily homes on the SF Peninsula have held steady and some areas still increasing in some places...
http://www.mercurynews.com/wherewelive/ci_9735111
http://abclocal.go.com/kgo/story?section=news/business&id=6288234

 

[spuppy]

Not sure if the figure of "1/3 to 1/2 of all home sales are foreclosures" is accurate. I agree it does seem high. But just to point out that the "1 in every 25" figure from Stockton is for all homes, not home sales.

Stockton CA has the highest forclosure rate at 1/25

"Stockton had the highest foreclosure rate nationwide in the second quarter with one in every 25 households receiving a foreclosure filing"

http://www.bizjournals.com/eastbay/stories/2008/07/21/daily76.html

Luckily homes on the SF Peninsula have held steady and some areas still increasing in some places...
http://www.mercurynews.com/wherewelive/ci_9735111
http://abclocal.go.com/kgo/story?section=news/business&id=6288234

 

[tomandrobin]

Over 50% of all the foreclosures are from California, Nevada(Vegas), Arizona (Phoenix), Florida and Michigan (Detroit). The rest of the 45 states is less then those five states combined.

 

[Twinkstarr]

Over 50% of all the foreclosures are from California, Nevada(Vegas), Arizona (Phoenix), Florida and Michigan (Detroit). The rest of the 45 states is less then those five states combined.

I think Ohio has to be on that list, I know Cleveland is having a problem with empty forclosed homes. About 3 times a week "Forclosure stories" are front page news in the Toledo Blade.

I was looking at our real estate section in the paper(we looked around in 2006). Guess what? At least 3 of the house we looked at are back on the market. A few that we looked at are still on the market from 2 yrs ago.