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Fractional Ownership is Holding its Own
More and more people are claiming that fractional ownership is the way second home ownership will be handled down the road as we become more conscious of our spending habits, as a result of the recent economic situation we have incurred the past years.
Here are some interesting numbers to show how Fractional Ownership has been able to handle this latest economic crisis:
In 2004, sales of Fractional Ownership were at $1.54 Billion. At the same time, Whole Ownership sales were at $165.7 Billion. From 2004-2007, the real estate market exploded, and both markets grew during this time. In 2007, we began the decline and drop in the real estate market. However, the drop in fractional, was minimal compared to that of whole ownership. Sales of fractional onwership for 2008 were $1.52 billion, down 1.3%. Whole ownership sales were down 53.7% to $76.8 billion.
So while whole ownership industry lost half of its value from 2004-2008, fractional ownership maintained their value. This shows that fractional ownership has gained a larger market share of the entire real estate market.
Fractional Ownership numbers come from Ragatz & Associates and includes Fractional, Private Residence Club and Destination Club sales. The Whole Ownership numbers come from the Annual Investment and Vacation Home Buyers Survey performed by the National Association of Realtors®
