DVC RESALES: Enjoys a Break from Interest Rate Hikes

By Vacation Club Life / February 13, 2023


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The Federal Reserve marked the eighth straight meeting that it raised rates again last week, February 1st. The Federal Reserve announced that it’s raising interest rates by 0.25 percentage point, bringing the total to 4.5% now in total. If the Fed chooses to hike again at consecutive meetings, that will mean another increase in March and May 2023.

With this move, how does it affect Disney Vacation Club’s resale market which is currently booming?

According to outside DVC sources, Right of First Refusals (ROFR) have declined to almost zero in the last three months. This has caused a buyer’s frenzy as more and more deals are negotiated whereas buyers believe DVC will not ROFR their contract if slightly below the usual price per point that we saw over the last two years. Although the Seller must agree to the price first, price-per-point-discounts are being seen over the last eight weeks.

Debbie Ely of Vacation Club Loans states “we saw the interest rates increasing month after month, so we took an immediate active approach and locked in rates with our main bank last October. This has allowed us to help DVC resale buyers by not raising our own interest rates for our 10-year program.”

Kristen Tutas of ResalesDVC says “The beginning of the year typically brings an influx of listings and that in turn gives buyers more negotiating power. What we’re seeing now is very normal for the DVC market. Just like the housing market, saw a drastic increase in prices in 2020 and 2021. Now the market is starting to stabilize again and be more in line with pre-pandemic rates. It’s a healthy market when prices are not inflated. Buyers are more inclined to make offers. See current listings here.

Vacation Club Loans, a DVC lender, borrows money and then lends it to individual buyers on the secondary market as most direct banks do not finance singular timeshare memberships. Over the past year prime rates have increased by 4.5% but we have been lucky to avoid that big hike and provide a break for resale buyers! We will be able to keep our rates lower and not increase them until this credit line we locked in has been depleted (and it will get depleted) during this busier than normal time with ROFR temporarily out of the picture.

No one knows how long this will last so financing has been key in helping buyers jump in earlier than they might have originally planned on adding points due to this brief market change.

Furthermore, Vacation Club Loans continues to waive the Loan Origination Fee, saving another $199 on closing costs.

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