02/17/2014

Softer January Brokerage Sales as New Year Begins

By John Burnham, YachtWorld editorial director

After eight months of year-over-year improvement, the U.S. yacht brokerage market started 2014 with 5 percent fewer boat sales in January than in the same month in 2013. According to YachtWorld member brokerages reporting in SoldBoats.com, 1635 boats changed hands during the month, down from 1728, but the total was still higher than the five-year average for the month of 1559.

The aggregate price paid for boats during the month increased by 2 percent compared to January 2013, with sales of $242.7 million. The gain was made due to the fact that sales of larger vessels generally held up well during the month, even as the number of smaller power and sailboats sold declined.

Powerboat sales as a whole were down 6 percent for the month, with 1284 boats sold, yet the value of the boats sold rose 27 percent, to $212 million. In contrast, the number of sailboats sold declined only 1 percent, to 351 boats, yet the total price paid for the sailboats declined by 56 percent to $30.5 million. This last extraordinary stat can be traced to the benchmark in January 2012, when 5 vessels 80 feet and longer were sold for $43 million; in January 2013, no sailboats of that length changed hands.

Most of the downturn in the month was due to lower sales volume for boats under 26 feet and, to a lesser extent, boats 26 to 35 feet. Under 26 feet, sales were 21 percent lower, with 453 boats sold, and among boats 26 to 35 feet, sales were down 4 percent, to 580. The value of the boats sold in these size ranges declined by lesser percentages, so the average prices increased incrementally during the period.

Among powerboat sales, the strongest growth was among boats 46 feet and higher, especially 46 to 55 feet long where sales were 34 percent higher. Total value of sales increased at a slower rate among boats 46 to 79 feet, indicating lower average prices, but over 80 feet, more expensive boats sold well, with volume up 17 percent and total price paid up 112 percent. Among sailboats, the story was a bit different, with level or higher sales and generally higher average prices among boats 36 to 79 feet, and no sales above 80 feet, as mentioned earlier.

Note: A version of this article first appeared in Soundings Trade Only Today.