Ragatz Associates’ “The shared ownership resort real estate industry in North America: 2011” survey, presented at their Fractional Interest Conference in San Francisco (14-16 March), shows a drop in timeshare sales but concludes that the market is on the rebound as consumer confidence in the product remains strong.
According to the survey, there are 331 fractional interest projects and private residence clubs, the majority of them in the United States. Of these, only 104 made sales in 2010, compared to 125 the previous year.
The total sales volume in the shared-ownership industry in 2010 was US$530 million, down by 38 per cent from the US$860 million registered the previous year. This figure, however, is not so alarming when compared with the drop of 60 per cent in whole-ownership vacation home sales.
Dr. Richard Ragatz said: "The fractional product continues to make sense for today’s consumer. Owning real estate and quality time spent with family and friends are key components in the decision making process. Although overall sales have slowed down, vacationing is still important to today’s consumer."
More than 200 industry representatives gathered at the Fairmont San Francisco for the conference, which also included presentations about the use of social media, trends in consumer behaviour, ways of financing new and existing projects and real life case studies, amongst others.
Also announced at the Conference was the newly created partnership of Ragatz Resort Realty and Resort Equities, which will provide unique opportunities for sellers of resort-oriented properties, as well as buyers, operators, and investors of such properties.