MarketWatch: Sales of Vacation Homes Rose Last Year

APRIL 6, 2010 UPDATE: Compare these MarketWatch numbers to the numbers from the 2010 The Shared Ownership Resort Real Estate Industry report by Ragatz Associates released last week, and it's interesting to note that the sales volume for the fractional ownership industry was still an impressive $860 million in 2009. In general, experts in the resort real estate industry believe that shared ownership resort real estate will rebound more rapidly and strongly than whole ownership as the economy recovers.

According to MarketWatch today, sales of vacation homes rose 7.9 percent in 2009. It was the first uptick in sales in the vacation home sector since 2006, reported the National Association of Realtors' Lawrence Yun, chief economist for NAR, in a news release:

"The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat," said Yun.

These numbers underscore The Élan Collection mantra: buyers who are in the market for a vacation home value their experience and their time just as much as their money. Fortunately for them, The Élan Collection is not only committed to creating memorable vacations, but also redefining the luxury vacation home ownership experience by bringing the benefits of shared interest home ownership to the exclusive world of private residence clubs.

Are you encouraged by the 2009 sales numbers from NAR? Why or why not?

A Piece of the Vacation Real Estate Pie: Top 3 Take-Aways from Fractional Summit 2010

Fractional Summit 2010 recently wrapped its annual delegation of the biggest and brightest stars in the international fractional industry. What were the key take-aways from the event?

1. Fractionals are resilient in the current market. We’ve been saying it all along. Fractionals, or shared ownership opportunities (as we prefer to call them), are “the smart buy” when it comes to purchasing luxury vacation properties in today’s real estate climate. Rather than hassling with the headaches of typical home ownership, the affluent can own a piece of the ocean, a slice of the good life in wine country, or a share of the mountain. It’s due to the fact that “fractionals have win-win appeal as both a lifestyle buy and an investment"; while Piers Brown, founder of the UK’s Fractional Life, noted: “Despite the economic slowdown, there are green shoots starting to appear and a week doesn’t seem to pass without Fractional Life featuring news of a fractional real estate launch somewhere in the world.” Where Piers sees green shoots, we see the glimmer of élan… but we both agree that the future looks bright.

2. Fractionals have high levels of consumer satisfaction. The delegation also found that fractional owners in a variety of price points are happy with their investment. It’s easy to see why. When you look at the offerings at fractional private residence clubs such as The Élan Collection, owner-members will have more than their fair share of benefits (forgive the pun): luxury amenities, services, affordability, flexibility, reduced running costs, stress-free management and the potential for capital appreciation.

3. Fractionals are a natural upgrade from a timeshare. Fractionals often get compared to timeshares, but they exist in a league all their own, says Stan Tonkin, Vice President of International Marketing and Sales for The Élan Collection. “Shared ownership private residence clubs like The Élan Collection offer a rare opportunity to own a luxury vacation residence for a fraction of the price,” he said. “It’s vacation home ownership at its best.” According to the delegation, shared ownership "is a viable solution to second home ownership as it fills the gap between timeshare and whole ownership. As Bryan Lunt, Chairman of the Absolute World Group of Companies, commented during Fractional Summit, “Fractionals have lower management fees, more benefits and feel like more of an asset.”

What do you think of the Fractional Summit panel’s findings? Are you seeing more enthusiasm for shared opportunities verses whole ownership opportunities? Are affluent clients embracing the fractional concept in your market?

Haute Living: Wave of Yacht Sales A Boon for Luxury Fractional Private Residence Clubs?

The Haute Living blog today reported that European yacht-making companies like Princess Yachts and Beneteau SA are rolling out their most expensive models yet. According to the post, "Princess Yachts received their first $19.5 million order to build its largest boat ever (a 130-foot vessel)" while "Beneteau, the world’s largest maker of sailboats, and HanseYachts AG, Germany’s largest yacht maker, are also predicting higher revenues."

What's the hook? It could mean that the affluent "are beginning to spend again, as the demand for larger and more modern vessels picks up," Haute Living concludes. We find this news encouraging on a number of fronts. Wealthy buyers seem to be riding a wave of confidence as everything from yacht sales to high-end jewelry sales have been up recently. Additionally, experts say that high-end yacht purchases are almost always paid for in cash--which is also true for the majority of fractionals in ultra luxury private residence clubs.

What's your view on Haute Living's post?