Sales in the once recession-proof vacation-time-share sector have plummeted, and inventory has surged to new highs over the past six months. “It is a buying opportunity,” says Mark Lunt, principal of real estate and hospitality transaction advisory services at Ernst & Young. “People are demanding lower prices, and sales folks are slashing prices [by] double digits and offering incentives.” The industry’s woes are twofold. First, developers are having a hard time selling new units because of the glut in resales. At the same time, the seized-up credit markets are making it difficult for developers to securitize loans they provide buyers. Defaults on time-share loans climbed to 12% in March from 8% at the end of 2008, which has spooked lenders. This means developers lack cash to lend.
By Janet Morrisey, April 30, 2009, Time Magazine
For sales activity information on Residences at the Little Nell and Dancing Bear Aspen high end fractional projects, see my May 10, 2009 blog post