posted by Admin on Sep 25
It seems that like the housing market, the “boat” market has also fallen off. Im referring to boats between 40 and 75 feet. Sail or power.
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It seems that like the housing market, the “boat” market has also fallen off. Im referring to boats between 40 and 75 feet. Sail or power.
September 27th, 2009 at 11:17 pm
Yes the value of yachts are declining but not because they are worth less and only as a weak connection to the housing market. The markets aren’t linked as tightly as most people think. When folks get financially scared they want to unload all their luxuries As more vessels are added to the market, the law of supply and demand comes into play. To attract a buyer the owners must lower their prices. The boat still has the original value and a survey would show that. Its just that if you want you boat to sell and not the similar one 100 miles away you have to put an attractive price on it. Between boats 40 to 70 feet there has been a small increase in sales (between 6-8%) over 2006 numbers. However, 70+ foot Yachts have had a 20% increase over 2006 numbers. The kind of person that wants and can afford a 70+ footer doesn’t care about the market. The person that wants a 40 foot, 50K boat DOES care about the market. That is why the disparity in the numbers. Oddly enough, boats 20 to 30 feet under 20K have really taken off in the last 7 months. We can’t keep those boats in stock. Keep in mind that the European markets are still buying boats at a very favorable exchange rate. It may be people’s perception that the boats are worth less and that the market is slower, but I am still working 60-80 hours a week due to the appointments I have and the research that my clients ask me to do. As for offers, only 1 in 5 offers we get is an “uneducated” offer. The rest of them are really in the ballpark. I know this answers your question.
September 28th, 2009 at 2:54 pm
There is a difference, in a sense, between the “value” of something, and what someone is willing to pay you for it. In the end, anything is only worth, in terms of dollars, what someone will pay you for it. So while the value of yachts may not be declining, what people are willing to pay for them may be changing, and making it seem that the value of boats is declining.
September 29th, 2009 at 1:16 pm
Hmmm, good question.
My two cents….
I see them declining. I view it as more of an adjustment or equalization. Many used boat prices are highly speculative. They arrise either from a greedy owner or a missleading broker who lists high to get the inventory then breaks the owner down over time.
Prices are declining due to interest rates, dollar exchange variables and inflation…hand-in-hand with investment portfolio losses, job losses and a whole host of other variables. In this buyers market…simply put, the buyers aren’t willing to part with their hard earned dollar so easilly. The choice they make in their purchase must stand well above the crowd in terms of fit and finish or options/electronics and price above all.
An example …I had a1983 C&C 29MkII a few years ago for sale. I bought it cheap on ebay and totally rebuilt it(my hobby). It was in great shape but not excellent….very capable…I sailed it 3-4 times a week…and clean and safe. They ranged in price from 19k for a beat up fixer-upper to 38k for a total nutbar owner(LOL).
I listed mine myself on a few sites for 25k and accepted 24.5k in three weeks. I made enough to have sailed and docked the boat for 2 years for free and a bit to upgrade. The purchaser was also very pleased and still enjoys the boat.
The putz listed for 38 found my listing and hounded me for 3 months…his boat has spiralled with the market down to a price of 32k which is still too much and i’m on my second boat since the sale mentioned.
My point is this…yes the market is soft for reasons I mentioned initially…but some owners are soft in the head as well.
More succinctly this…and it applies to real estate as well…
A boat,land,house… is only worth what a willing and able purchaser is willing to pay for it.
Some people find that reality hard to accept given their attachment or obligation in the object. Some people rely on a broker for this advice as well and sometimes that faith is misplaced.
September 29th, 2009 at 9:02 pm
since u asked me ,I dont know. i hate boats.