Written by David M. Disick

This article briefly summarizes several trends noted by NorthCourse in their 2009 report.

PRC Pricing Trends

NorthCourse notes that PRC prices are trending much higher with larger homes, higher quality finishes and more exclusive locations.

NorthCourse notes that fractional PRC prices in the 1990s were seldom over $300,000, whereas today average prices for new PRCs are in the mid $300,000's and now range up to $3,000,000.

NorthCourse notes that it is not unusual to find 3 and 4 bedroom residence clubs priced at over $500,000 per fractional.

NorthCourse also notes that the greatest price increases have been in larger units, four or more bedrooms.

Comment
This underscores the appeal of the fractional PRC product to affluent buyers even in the current climate.

Fractional Expansion

NorthCourse notes that international buyers have increased significantly in numbers, and notes the trend toward downtown settings in addition to traditional resorts.

Comment
This underscores the validity of the fractional PRC concept as reflected in such expansion.

The Emphasis On Fly To Destinations.

NorthCourse notes that 74% of 2008 purchases are bought in fly to destinations, further underscoring the prominence of more affluent buyers who can afford the expense of fly to destinations. For PRCs NorthCourse notes the typical buyer is 45 to 65, married, often with grown children, income of at least $300,000 per year, and more importantly a net worth typically starting at $3,000,000.

Existing Properties Versus To Be Built Projects

NorthCourse notes that presales were down 35%, indicating that consumers are hesitating to purchase to be built fractionals. This underscores the prominence of the trend to fractionalizing existing single family residences.