September 2021 DVC Buyback Volume Rises, Prices Flat

Data from private sale deeds transfers in September 2021 show resale median pricing remained flat in general with some specific resorts fluctuating in price.

Median prices represent the midpoint of all transfer values for each resort and period in question. Transactions occurred at rates both higher and lower than the median, as illustrated in the chart below.

Disney's BoardWalk Villas reversed the $5 per point reduction in August and increased by $5 per point from $135 per point to $140 per point.  Animal Kingdom Villas and Disney's Polynesian Villas & Bungalows both had price increases of $4 per point from $131 per point to $134 per point and $3 per point from $172 per point to $175 per point respectively.  However, when reviewing the detailed pricing by contract size, both of these increases were caused by a change in the mix of contracts purchased in September instead of an increase in market value.  For both resorts, there was an increase in the number of contracts sold with fewer than 100 points from August to September.  Smaller contracts generally attract a premium and can skew market summary metrics. 

The remaining resorts fluctuated with a ±2% range.  There wasn't a significant change in the resale market in either direction based on the September recorded sales.

Resale prices for Disney’s Riviera Resort continue to fluctuate. Useful conclusions remain elusive with only 58 total contracts sold in 2021, twelve of those during the month of September.

In total, 74k points across 481 private sale deeds were recorded in September 2021 with the Orange County (FL) Comptroller, an increase of 14% over the prior month. This number is lower than the 100k direct points sold for the same resorts. 

Disney Vacation Development’s buyback activity in September suggests the BoardWalk Villas and The Villas at Disney's Grand Floridian Resort and Spa both reversed maximum buyback price decreases in August, increasing in September by $6 per point and $13 per point respectively.  Both resorts now have maximum buyback prices $2 per point below the prior high values in July.  The maximum buyback price increased by $16 per point at Disney's Old Key West Resort to $126 per point, the most significant increase in September.  Animal Kingdom Villas saw an increase of $8 per point to $128 per point likely related to the significant increase in buyback volume for the resort.  The largest decrease in maximum buyback price was at Bay Lake Tower at Disney's Contemporary Resort with a decrease of $35 per point; however buyback volume at Bay Lake Tower has slowed considerably over the last few months.

Buyback volume increased significantly overall by 328% to 41,000 points, returning total volume the level previously seen in July.  While most resorts increased proportionally, essentially returning to their July levels, Animal Kingdom Villas buyback volume increased to 8500 points which is a new peak for 2021.  For Animal Kingdom Villas, this represents an increase of 6000 points and 8000 points relative to July and August respectively.

Exercising its Right of First Refusal to buy back points can be a profitable venture for DVD. As the above price range data illustrates, DVD is frequently able to reacquire points for under $110 each at resorts like Disney’s Animal Kingdom Villas and BoardWalk. Disney then sells the points to new buyers, with published prices currently $186 each for Animal Kingdom and $210 for BoardWalk.

Old Key West remains a target of buybacks with DVD exercising its Right of First Refusal on a significant portion of recorded sales (77% of recorded points) for a maximum price of $126 USD per point. Across all Walt Disney World resorts, 36% of points (41k points across 233 buyback deeds) were recorded in September 2021. In the case of Old Key West, Disney is able to re-acquire contracts slated to end in 2042 and bundle them with the resort’s 15-year extension.

The price range data at the top also includes listing prices (green). Listing prices generally outpace prior sales but ultimately buyer interest will dictate market value.

Disney Vacation Development’s buyback activity currently outpaces direct sales for at least two resorts: BoardWalk and Bay Lake Tower at Disney's Contemporary Resort. In 2021, DVD has reacquired 26,000 points at BoardWalk and 32,000 at Bay Lake Tower. Direct sales at those two resorts totaled 15,000 and 26,000 respectively from January to September 2021.

At dvc.market, there are resources including additional market data, pricing regression analysis, and a DVC listing search engine--featuring 12 well established brokers who specialize in Disney Vacation Club timeshare ownership transfers.

Chris Dantès is a contributor to DVCNews.com and has been a Disney Vacation Club owner since 2020 at Disney's Riviera Resort. You can find Chris posting on many Disney forums under the username i<3riviera.