Compared to a five-year average for unit sales, which for June 2006-2010 stands at 3513 boats, last month’s numbers are significantly better than the two previous years, but well short of 2005-2007 when 3750-4000 boats per month were the norm.
For the year to date, 2010 continues to show improvement over 2009, but as the economic recovery has flattened or as some economists think reversed itself, the dramatic double-digit gains of the first quarter have now dropped to single digits, although for the year, units are still up significantly over 2009, at 19 percent, and valuations even more so, at 29 percent.
Paradise Yachts enjoyed a strong first quarter with 5 sales, but we too have felt the push-back from the buying public. We are getting record traffic but I see people keeping their wallets in the their pockets for the most part; not nearly as many calls or emails as a few months back. But we are still selling boats; a 46 Grand Banks sold two weeks ago, a 58 Monk closed last week. I wrote an offer for a 36 Monk today. I just have to match the right boat with the right buyers.
For the third straight month, the average time it took to sell a boat was over 300 days, which suggests that the market is still working through unsold inventory. Notably, although sailboats are taking just as long to sell as powerboats, their valuation in June transactions was up 12 percent while power was down almost 10 percent
Adding to the sales issue is the many boats from which buyers have to choose in the USA.
- 6,662 offshore fishing boats
We would like to hear your opinion about how this economy if affecting your boat buying.
