Ragatz Associates presented the results of its latest research on “The shared ownership real estate industry in North America” at the organisation’s 2010 Fractional Interest Conference in San Francisco.
According to the research, the estimated total sales in the shared ownership industry in 2009 amounted to US$ 860 million, down 44 per cent on the results of the previous year. There was a similar decline in all three components – fractional interest, destination clubs and private residence clubs. By comparison, whole ownership vacation home sales were down by 60 per cent.
The survey identified a total of 322 fractional interest projects and private residence clubs, along with seven destination clubs, most in the United States. Of the 322 developments, 125 are currently in active sales, compared to 138 active fractional projects reported in last year’s survey, a decrease mostly due to companies ceasing sales in the country’s difficult economic situation.
The report concludes that the decline in the industry’s sales performance was more due to external factors such as the economy and lack of financing and less due to lack of consumer interest in the concept of shared ownership. It predicts that shared ownership resort real estate will rebound more rapidly and strongly than whole ownership resort real estate as the country’s economy recovers.