New data from Ragatz Associates shows that the total shared-ownership sales volume in North America reached US$552 million in 2011, a 4% increase from US$530 million in 2010.
The US$552 million includes new closed sales, presales and in-house sales. In reviewing the three components, sales volumes were US$103 million, about 19%, in fractional interest projects, US$228 million in private residence clubs, about 41% and US$221 million in destination clubs, about 40%. Even though increasing by an overall four percent in 2011, shared ownership sales volume was down by 76%, about US$1.7 billion since the peak year of 2007.
The survey revealed that there are currently some 305 fractional interest projects and private residence clubs plus six destination clubs under development in North America.
While prices vary widely, the average fractional interest is US$131,000 per share; private residence clubs average US$254,000 per share. Annual maintenance fees average US$6,650 per share. The average price for membership in the destination clubs is US$273,000.
In reviewing the overall industry performance, the report notes that factors combined in 2011 to create the “perfect storm” for stagnation in shared-ownership sales performance, negatively impacting this market since the last quarter of 2008. They included uncertainty about the country’s long-term economic stability and an almost total lack of consumer financing.