Boat Market Conditions???

[maineman]

I'm flirting with buying another (used) boat this fall. But I'm confused about market conditions.
I haven't been able to figure out the impact of Covid on the sold prices.
Of course, every broker I talk to claims that the market has never been hotter. But the actual sale prices all still seem to be below asking. Hard to gauge where the truth lies.
Any thoughts?

 

[Lollygag1]

My dock mate put his 34 SeaRay on Craigslist a week ago Saturday, it sold same day for full asking price. Boat was in great shape and priced accordingly. Survey was the following Tuesday and the closing on Friday. Met the new owners the next day. My guess it depends on the boat and the area.

 

[oscar]

My $.03

As far as I can tell asking prices are holding. (They arguably were too high on average for a looong time) Sellers are wanting to take advantage of the lively market (it is) but don't want to price too high and be left standing when the music stops again. (It will). Sold prices are pretty close to asking.

I just bought. It was priced reasonably, the boat was worth every penny of it, and would have been before. It was not on the market long and wouldn't have been. I saw it, and I didn't bother trying to get a few pennies off and gave them their asking price. It appraised for 3% more. (Granted an old boat with no meaningful book value to refer to. There were comps however.)

Bottom line is, who cares and don't worry about it. If you're ready to be a boat owner go out and if you see something that talks to you and the price is fair buy it. Waiting for another slump you may not be ready anymore. Life dictates when to go boating. Not the market.

 

[OldDan1943]

My opinion/guess is, people are buying 'escape boats' so when and if they can conquer the C19 then, the used boat prices will fall.

 

[Njlarry]

Wondering the same thing my self. Best as I can observe, boats sold quickly as non and past boaters looked for alternatives to travel vacations. Several boats in my marina sold in a day or two in June but one boat fairly priced by a very motivated seller only just sold, it was 32' with gas engines. The market seems to me to have calmed and one boat we considered in March is still on the market. Agree prices may drop when they are done with their fling or find out boats need maintainance. I have noticed that many of the 2000 era models I am searching for have recent price drops. No idea what uncertainty of elections will do to all markets.

 

[Codger2]

My dock mate put his 34 SeaRay on Craigslist a week ago Saturday, it sold same day for full asking price. Boat was in great shape and priced accordingly..

I have just experienced almost the same scenario! Listed on a Friday, full price contract on the following Saturday. The boat just completed the hull & engine survey. What's the secret? List a super maintained, clean boat at a fair price and in this market it will sell!

 

[BandB]

Bottom line is, who cares and don't worry about it. If you're ready to be a boat owner go out and if you see something that talks to you and the price is fair buy it. Waiting for another slump you may not be ready anymore. Life dictates when to go boating. Not the market.

I agree. You can spend a lot of time trying to guess and play the market and more than likely miss on the boat you would have loved.

As compared to business, you're looking for personal appeal, you're looking for a boat that makes you happy. In business, you'd reduce it to dollars and cents and you wouldn't care which boat or item, just financially will it make you money. Once again, boats are not investments and never financially make sense.

 

[SoWhat]

Friends are serious buyers but they keep making offers below asking. A number of boats they have looked at have been sold at asking price. It's a sellers market.

 

[Sidclark]

Coming from a broker...Right now sales records are being broken everyday. Expect to pay asking or slightly below (if the boat is priced right). If you see it and you like it, grab it. I'm down to my last listing and it's under contract with TWO backup offers just waiting for a failed sale. All my listings were in the 200K plus price range. I also represent Seawind Catamarans and they just came out with a new model. It's a 44 footer priced at 750K and in two months 32 are under contract. It's crazy out there, so when a broker tells you there's other folks interested in the same boat you're looking at, believe him.

 

[mncruiser]

I just sold a 2006 express cruiser for my asking price, 55k. A year ago I would have asked 45-50k and not expected it to move for months. Mine sold in 4 days, no survey, no real inspection. And yep, about 3 people in line if it fell through.

My boat was in good condition with all maintenance documented and nearly every receipt for upgrades and repairs, and in my Market I would call it an 8 on a 10 scale.

Now I’m shopping as well, and have decided it’s not a big deal to find something this season (MN) as a lot of asking prices are high.

A few boats that I like that I think are overpriced are not sold, and probably will remain that way, I know this because I’ve been watching them not sell for months.

I sold early this season to take advantage of a hot market, and I think I made a little extra $ too which is nice.

I’m hoping things settle down a bit.

 

[Gmarr]

But the actual sale prices all still seem to be below asking. Hard to gauge where the truth lies.

Any thoughts?

Where is your sales data from? Would be interesting.... but all things I hear- close to asking unless it’s a piece of junk. And those may be the ones looked at?

 

[maineman]

The sales data I referenced came from here:
https://unitedcityyachts.com/blog.php?id=76
Mostly not trawlers and only representing Canadian sales, but still interesting.

 

[mncruiser]

I also think there is still some softness in the market.

You may consider this anecdotal data, but you may also find it helpful.

I called a broker on a boat about 2 weeks ago as it was one on my list. It was a Meridian 341 that had been listed for 110k if I recall correctly. The broker was chatty and when I called and he mentioned it was sold, but I was chatty as well and asked some questions, and he ended up telling me the boat sold for 92k. This was after telling me how “hot” the market was a few times, and how he had backup offers ready, kind of a sales push from the guy even though he had nothing to sell me.

I do know the boat had been hauled to have the bow thruster repaired and a few other repairs performed. Also, this was one they owned and had taken on trade, not sure how that would impact things.

I did find it odd that they went from 110k to 92k after all his “hot market” comments. What is likely is that the condition was not ideal, and the sale price probably reflected it.

Also the broker/dealer was likely motivated to not own a 100k boat for the winter!

 

[oscar]

One thing to keep in mind is that some boat markets are hotter than others. Center consoles are unobtainable. Popular brands like Carver and Sea Ray are moving briskly. Anything that has a somewhat recent book value. I just bought a 42 year old Hatteras and while the market for decent examples of these boats is indeed less anemic than it was for a while, there's plenty of "inventory" and the dogs are, still, not selling.

 

[lwarden]

I have just experienced almost the same scenario! Listed on a Friday, full price contract on the following Saturday. The boat just completed the hull & engine survey. What's the secret? List a super maintained, clean boat at a fair price and in this market it will sell!

Someone got a nice boat, not surprised it sold fast. Good examples will always sell quickly to someone looking for a cream puff.

 

[Sweet marie]

I just sold a Phoenix 29 in a matter of days. I asked a price I normally would not have even considered just to see if anybody would be interested and I got close to asking price. At least in Southern California used boats are selling fast and good ones are in very short supply.

 

[jleonard]

I sold my Albin in June in basically one day without advertising.
I may have priced it a little low but I have no regrets. I wanted out and I'm out.

 

[sseltzer]

I sold my Catalina 36 sailboat in March for close to asking. It was on the market 3 days. Also sold my Duffy electric boat at the same time in less than 1 week.

I was motivated since I had just purchased an '06 Mainship 34T and didn't want to be a multiple boat owner but didn't under price them.

 

[long-cours.62]

The market

was very calm during few month but now it start again .
And on all size of boat for example two +50 m who was on the market from long time was sold last week, lot of "small" "trawler" type who are waiting for years was no "sale pending".
For the two 50m+ I know the seller don't decrease the selling price.
For the "small" I have not the information.


In another hand for our Trawler 72' only one offer at 420k€, but only offer don't even move to MOA.
Finally we will probably start traveling with her...(before they will close the border ...again !) it could be worst

 

[Mako]

Interesting thing is that one shipyard in China who I’ve been in contact with for a new-build for the last year contacted me recently.

Said they would discount the quoted price to build by 15%, which is a significant amount.

So despite the strong image trying to be projected by their government, the economy is hurting. Materials prices have naturally fallen. Target profit margins are being reduced. Etc.

None of this is surprising. The thing that really sucks is that no way can I travel internationally.

 

[FF]

Not a boat, but for the first time since my parents bought a cottage on a small CT lake in 1956,, we have had folks come knocking , inquiring if the place was for sale.


Not sure what this signals for big city real estate.


Would assume larger boats would be more desirable for folks with no boating experience that want a floating escape dirt house.

 

[PPandE]

As a serious buyer, I’ve come to the opinion that clean, well maintained boats are selling quickly at or near asking. The dogs, project boats and fixer uppers just sit. I had a contract on a trawler for 25% under asking that I walked away from back in may. It was much rougher than depicted and is still on the market. I’ve had two sold out from under me, one while I was driving five hours to see it. Another that I traveled 400 miles to see had used five year old photos in the ad. It’s still for sale too. I’m still shopping...

 

[BandB]

Interesting thing is that one shipyard in China who I’ve been in contact with for a new-build for the last year contacted me recently.

Said they would discount the quoted price to build by 15%, which is a significant amount.

So despite the strong image trying to be projected by their government, the economy is hurting. Materials prices have naturally fallen. Target profit margins are being reduced. Etc.

None of this is surprising. The thing that really sucks is that no way can I travel internationally.

New boat builders have different market factors confronting them that do used boat brokers. Two major challenges. #1 is travel. This is especially true with any customization. The branded builders in China are doing ok, those who sell standard configurations and do so out of offices elsewhere. However, independent yards that do custom builds are struggling. Who is going to start such a build when you can't even fly there and back. We're building a boat in Italy but we have a couple handling it for us who flew there by charter when the yard reopened and don't know when we'll see them again. They're enjoying life today in their Italian Villa.

#2 is financial and especially business owners and executives. It's both actual pressure and fear of what might lie ahead. They are just hesitant to start and this is especially true at the upper end of the market.

There were a lot of order cancellations but most builders had backlogs and were also shut down a while. Some of those customers even returned. Someone mentioned the Center Console market, well the custom SF market in the US still has demand over capacity. Perhaps not as far over as it was but still over.

Now uncertainty has also played into people not wanting to plan and schedule a build and wait and jumping on the best available used. Used boat sales are benefiting greatly from the desire for instant gratification. People don't know about next year or beyond so they don't want to wait and miss today. That has helped create a unique market not explained by any future outlook but more by "we want it now." This is impacting negatively megayacht builders with three year lead times even.

So a very mixed market with many factors influencing and then individuals going against all those factors.

On our build, the time lost by shutdown will largely be made up as a couple of customers put boats on hold. 30-60 days later they came back and were ready to follow through but disappointed to find out their build would now follow rather than precede ours.

 

[backinblue]

I am not shopping, but what I am hearing is that the boating market is surging in face of or because of the pandemic. Not sure if the same holds for manufacturers trying to keep factories open and people employed. Maybe there is more bargaining power there.

 

[rayhyland]

The RV market is also surging.

I suspect that some folks who would normally be spending their discretionary dollars on luxury vacations are looking at other options, and the boating and RV markets are getting a big uptick because of it.

Other outdoor activity markets are also booming. You can't find a new jetski or dirtbike these days either. It's like folks suddenly all just re-discovered the great outdoors.

 

[Tarheel65]

RV Market Booming

In addition to the RV market booming, the market for campsites at ownership campgrounds is also booming. Is the same occurring with ownership boat slips?

 

[Tamara]

Lol. I wanted to look at your boat, then suddenly it was off the market.
Glad you sold quickly. I ended up buying an awesome Monk 36, so it all ended well ?️

 

[Birdman]

My $.03

As far as I can tell asking prices are holding. (They arguably were too high on average for a looong time) Sellers are wanting to take advantage of the lively market (it is) but don't want to price too high and be left standing when the music stops again. (It will). Sold prices are pretty close to asking.

I just bought. It was priced reasonably, the boat was worth every penny of it, and would have been before. It was not on the market long and wouldn't have been. I saw it, and I didn't bother trying to get a few pennies off and gave them their asking price. It appraised for 3% more. (Granted an old boat with no meaningful book value to refer to. There were comps however.)

Bottom line is, who cares and don't worry about it. If you're ready to be a boat owner go out and if you see something that talks to you and the price is fair buy it. Waiting for another slump you may not be ready anymore. Life dictates when to go boating. Not the market.

Oscar, where ya using a 53' boat? I KNOW you are not using it in Bethlehem, I had an office in Bethlehem and Allentown for years, cool town. BUT, I know a 53' ain't going to be sailing around the Bethlehem Brewworks Brewery on Main St.!!

 

[ksanders]

The RV market is also surging.

I suspect that some folks who would normally be spending their discretionary dollars on luxury vacations are looking at other options, and the boating and RV markets are getting a big uptick because of it.

Other outdoor activity markets are also booming. You can't find a new jetski or dirtbike these days either. It's like folks suddenly all just re-discovered the great outdoors.

My opinion you are dead on correct. It’s not just boats. I went to the seadoo dealer in june for a part and they had ZERO seadoos for sale. All sold out for the season.

This Covid thing has changed people's spending habits.

 

[Shrew]

A smaller boat dealer I was just speaking with said he has sold as much in the last quarter as he did in all of 2018.

Friends of ours posted a FSBO sign and had a P&S in 3 days. They have been looking to move up, called on 3 boats, that were all under contract as soon as they hit the market.