From hurricanes, to elections, to wars, and rising interest rates, there are a variety of social, as well as economic factors, that can sway the luxury yacht market momentum one way or the other. Boats and other luxury item purchases are normally among the first industries affected by any fluctuation in consumer confidence. While all of that may seem like it would have a severe effect on yacht sales, the deep love of boating in the U.S. continues to keep our recreation thriving.
"Even with a tumultuous mid-term election and rising interest rates, people still love to get together with friends and family on their boat," said Brian Boettler, CEO of United Yacht Sales. "We've seen over the last two years that being out on a boat has never been more valued. People want to get outdoors, they want to relieve stress, and they want to spend time with their favorite people. What better way to accomplish all of this together than on the water?"
While overall sales across the yacht brokerage market have slowed in volume, demand is still strong as the supply is still lower than normal after a remarkable boom in boat sales during the pandemic.
"New boat inventory has not yet caught up," said Captain Jeff Palmer, President of UYS. "We spoke with a lot of people at the Fort Lauderdale Boat Show that didn't want to deal with the wait time to order a new boat and were now looking at brokerage."
Our industry data shows that while overall volume of boat sales has dropped, the average sold price remains higher than pre-pandemic levels, along with a lower average of days on the market.
BY THE NUMBERS
At United Yacht Sales, we are continuing to see signs of strong demand. Our website, for example, is averaging 30% more visitors per month than 2021 which was already a record-breaking year for us. "It's not that there is that many more buyers in the market," continued Jeff. "We are simply growing our footprint through a very strategic and successful marketing effort, along with recruiting some of the top yacht brokers in the industry."
If you're considering putting your yacht up for sale, but aren't sure if it will sell in this market or what it will go for, consider these factors:
- The average sold price of all pre-owned yachts in the U.S. over 40-feet was 41% higher in October 2022 than pre-pandemic.
- In 2022 and 2021, the selling price of a boat in this same segment above was over 90% of the list price, meaning most boats sold for close to the price they were listed at.
- The average number of days on the market decreased by 58% in October of this year compared to 2019.
As long as the number of listings available on the brokerage market remains lower than normal, prices will continue to stay relatively strong.
Some boats are continuing to sell within 24 hours of hitting the market. This Cabo Yachts 40 sold in less than a day by one of our newest brokers, Peter Shaarda.
WHY IS IT GOOD TO LIST BEFORE THE HOLIDAYS BEGIN?
Getting your boat listed for sale prior to the holiday season provides you with a distinct advantage over other sellers. Keep in mind that historically over the last four years, sales across the U.S. increase by 30% from January to February and over 50% from February to March. The boats that are closing during these months were likely put under contract 30 days (or more) prior. Being that it often takes several weeks to schedule a survey, get the results, re-negotiate, and schedule a closing, listing it early on makes sense.
Consider these factors in regards to the timing of listing your yacht:
- It often takes several weeks to get your boat ready for market.
- Scheduling a professional photo and video shoot can often take a few weeks.
- Buyers normally have more free time to shop for a boat during the holidays.
- Some buyers look to purchase luxury vehicles before the year end for tax purposes.
- Listing early means your vessel will be ready for all of the increased marketing and traffic for the Miami Boat Show and Palm Beach Boat Show, should it not sell in the first 30 days.
In other words, the timing of getting your boat listed is almost as important as its location and condition. A professional representation is very important to selling your yacht efficiently and it helps with the resale value.
(Seen below: Video of "REELENTLESS" a Viking 60 Convertible listed with United)
If you are considering listing your yacht for sale, or purchasing a new boat, please give our main office a call at 1-772-463-3131. With over 250 brokers worldwide in over 20 countries, we have the right specialist for your needs and location. Our goal is entirely on selling your boat, not on trade-ins we own or new boat inventory we have to sell like other brokerage firms. That means all of our marketing budget, support team, and the focus of our brokers is all on you and that really makes a difference. If you're interested in receiving a no-hassle price evaluation on what you're yacht might sell for, please fill out our "What's My Yacht Worth?" form online and a professional yacht brokerage expert will get back to you shortly.
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