Due to the economic downturn over the last couple of years many players in the timeshare industry have found the demand for timeshares beginning to decrease, for this reason many resorts have either been unable to secure money for financing or have not been willing to do so. One major player who recently began to go against this trend is Starwood Vacation Ownership, who recently secured $166 million to offer as timeshare mortgages for new owners at their resorts. One of the main issues leading to the decline in timeshare sales over the past year has been the inability of the resorts to secure credit for potential buyers to use as timeshare loans, virtually halting the operations of some resorts around the world. Since Starwood is securing this amount of money for timeshare loans it gives us a clue as to how they think the market will behave in the short term future.

I believe securing this much money to offer to potential buyers shows Starwood Vacation Ownership feels the market is beginning to turn around or will do so in the near future. Many experts are saying the economy is showing signs of recovering and stabilizing at this very moment and feel it will continue to stabilize and even grow throughout 2010. For the travel industry this means there should be an increase in the number of travelers and a decrease in the number of rooms being left vacant during a given time period. For the timeshare industry specifically this means demand for timeshares, both from resorts and timeshare resales, is expected to rise due to the fact that people will have more discretionary income and timeshares are considered to be a purely discretionary product. I have stated for quite some time my feeling that once the economy recovers people in this industry will begin to see an increase in demand, the fact is Starwood is preparing for this increase in demand by securing money for timeshare loans they plan to sell in the future giving them a head start on other resorts and companies in this industry.

Taking into account basic economics we can ascertain when the demand for a given market increases the amount of buyers for the product has increased, this is important because it means the supply for the product will not be able to meet the demand and for this reason the price of the product will increase. In the case of timeshares we can expect the prices to begin increasing at or around the same time the economy makes its recovery. With a rise in price in the near future now is the best time to purchase a timeshare, if you have been considering purchasing I would strongly encourage you to take advantage of the current market, resales are being offered at an all time low which means they will only increase in the years to come. If you are considering buying please visit our timeshare resales section to begin your search.

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