The fractional and private residence club (PRC) market in the US, Canada, Mexico and the Caribbean is showing small signs of recovery, particularly at the high end, despite sales being down for the first half of 2010, according to a half-year report issued by US fractional consultant Richard Ragatz.
Total sales in the shared-ownership resort real estate industry during the first six months of 2010 were around US$175.1 million, lower than in the same period the previous year. There were 105 active shared-ownership real estate projects in North America, compared to 125 in 2009. The average number of shares sold per month was also down to 1.4, compared to 2.0 in 2009.
There were, however, encouraging performances despite the general downward trend, according to Ragatz. These included top end PRCs, projects in prime destination resort communities such as Aspen, Vail, New York City, Maui and Los Cabos, and those selling smaller shares or integrated with a branded hotel.
The report concludes: “Despite the fairly negative findings about the performance of the shared-ownership resort real estate industry during the first six months of 2010, it appears that the bottom may have been reached and that demand is beginning to pick up.”