Brokerage sales slip in September

Posted on 06 October 2010

The number of brokerage boats sold in the U.S. normally begins to tail off in September as cooler weather settles on much of the country, but in the month that just ended sales also dropped in comparison with September 2009.

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According to reporting member brokerages of YachtWorld.com, unit sales were down 7 percent, from 2,420 to 2,246, and the total sales valuation fell 6 percent, from $222 million to $208 million. This was the third consecutive month that sales were even with or lower than 2009.

Because of stronger sales in the first six months of 2010, year-to-date sales figures remain well ahead of 2009. Close to 24,000 boats have changed hands, up 11 percent from 21,425, and the total valuation of sales is up 17 percent, from $2.03 billion to $2.38 billion.

The average time to sell a boat continued to fall in September and is now about nine months (277 days), compared with 292 days in September 2009. For the year to date, the average time to sell is 285 days, still two weeks longer than the 271-day average in the first nine months of 2009.

Unit sales in all size categories were lower in September 2010 by 3 to 10 percent, compared with September 2009; the lone exception was boats over 55 feet, which were up 27 percent, from 55 to 70 boats sold. Total valuation was down 8 percent among large boats, however, which was the second-biggest decline among size categories. The biggest valuation decline was among boats 36 to 45 feet, down 12 percent, with 501 boats selling for $61 million in September, compared with 554 boats selling for $70 million a year earlier.

Sailboat sales dropped 19 percent in September, from 521 boats to 423 boats sold; powerboat sales were off only 76 boats (4 percent), to 1,823. In total valuation, sail was down 26 percent, from $38 million to $28 million, and power came in 2 percent lower, down from $184 million to $180 million. It would be hard to identify this as a trend, however, as the numbers were reversed in August, when sailboat valuations increased 15 percent and powerboat valuations decreased 7 percent.

A more detailed report on September 2010 brokerage sales, including a spotlight on long-range cruisers, both trawlers and cruising sailboats, will appear in the November 2010 issue of Soundings Trade Only.

— John Burnham

Editorial director, YachtWorld.com

Comments

Chet you have a strong Point. I was replaced by a broker who has no incentive to sell the On-Site Boats he has listed. The Marina makes more money on haul out and storage than on a one time commission that will only reduce the number of Boats Stored by this large West Michigan Marina.

This Marina has tried to sell Low End Production Sail Boats, unfortunately we all know High End performs in tough times, not the "Budget stuff". So this operator is stuck on both ends, and the Customers would be wise to use off site independant brokers who want to move boats so they can eat. Used remains King in Michigan, and most sales go on trucks, and head south. Sellers and Buyers beware...

I am not sure which "large retailers" you are referring to, perhaps MarineMax? With all due respect to you Mr. Fourdug, I contend it is not a representative sample. While there are a hanful of very large sales that will make your average of $90-$92k a bit high, it is still important to understand that even in that range a very large percentage (90%+) of those transaction are happening outside of YachtWorld and the YachtWorld reporting brokers. The point is simply that YachtWorld and the dying breed of brokers who lives and dies by it are a diminishing bunch holding on to an outdated model. As such, the data they throw out should be looked at accordingly.

With all due respect to Mr. Ubetcha, there are a few large retailers that do not report their sold data to Yachtworld, and the data, like all polling information certainly has a margin of error. This information is indeed a representative sample. However, a little quick math reveals that the average unit price for the reported data consistantly hovers around $90-92k per unit. I seriously doubt that the average "drive way sale" approches this unit value. Apples and oranges!

There should always be a giant side note with these Yachtworld reportings. Yachtworld transactions are only a fractional representation of actual used boat sales. In addition to the fact that number of yachtworld listings have been steadily decreasing, many of brokers who do list on yachtworld do not publish their sold data anyway and those who do are self reporting it (therefore there is no reliability in its truth). The true market for used boat sales is in the drive way sales which are capturing more and more of the volume and will continue to do so. Throughout this down period, the boating public has come to learn the insignifance of the "yacht broker" in the transaction and no need to give up 10% of the tranaction to them. Use this data for what it is worth, very little.

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