Some intriguing numbers…

Let’s take a look at how the Shared (Fractional) Ownership industry compares to the Whole Ownership industry today and in 2004. We know that both industries grew during 2005 and 2006, started to decline in 2007 and experienced a virtual stand still towards the end of 2008.  However, what we see here is that Shared is holding its own and has actually gained a percentage point in market share from Whole.

Shared Ownership                    Whole Ownership

2004     $1.54 B                                     $165.7 B

2008     $1.52 B                                     $76.8 B

%              -1.3%                                        -53.7%

*Shared Ownership numbers from Ragatz & Associates and includes Fractional, Private Residence Club and Destination Club sales.

**Whole Ownership numbers from National Association of Realtors® annual Investment and Vacation Home Buyers Survey

We’d like to announce that Pierce Group has added another arm to our consulting business.  The stand alone home fractional industry has been growing significantly and we believe the segment should not be overlooked.  Pierce Group, LLC has recently purchased a franchise in the recently launched Fractional Homes International (FHI) business.  Sherman Potvin, creator of FHI and owner of LuxuryFractionalGuide.com has a strong passion for the stand alone fractional industry and it rubbed off on us.  We at Pierce Group are proud to be an inaugural franchise owner! 

In addition to our global Private Residence Club consulting business, we will begin to provide specialized consulting services for private second home owners and developers throughout major Idaho, Montana and Wyoming resort destinations over the coming months. 

Fractionalization of expensive and often cumbersome second homes is a very sensible approach in today’s market and we believe many will be anxious to pursue this new alternative.  The problem is that many mistakes can be made by homeowners who attempt to pull this off on their own.  Foresight Costs Less Than HindsightSM!  Personalized consulting services through FHI and Pierce Group can save thousands of dollars by assuring that homeowners do it right the first time.  Please stay tuned for the future launch of this exciting new business!

Eric Pierce