10/17/2014

Brokerage Sales Decline in September, Average Prices Increase

By John Burnham, YachtWorld editorial director

With the sale of 2,414 brokerage boats in September, 2014, the U.S. market was off by 7 percent compared to the same month in 2013. But average selling prices held even or improved, according to YachtWorld member brokerages reporting in SoldBoats.com; the only exception was in the superyacht market, over 80 feet.

The aggregate price for all boats sold in September was $221 million, down 5 percent from $232 million in September, 2013. But not counting superyacht sales, the aggregate price rose 6 percent, from $206 million to $218 million. At the same time, the average sold price moved up 11 percent, from $81,000 to $90,000.

One of the reasons for increased average prices was that sales were higher in the pricier 46- to 55-foot and 36- to 45-foot segments. And most of the drop in sales came in the two smallest segments, under 26 feet and 26 to 35 feet, which are higher volume and lower price. But that wasn’t the whole story, as average prices increased in the small-boat segments, too.

The highest-volume size range, 26 to 35 feet, saw lower sales by 7 percent, with 962 boats sold. Sales value actually increased by 1 percent, and the average sale price was up 9 percent from $50,000 to nearly $55,000. Among boats under 26 feet, sales were down 15 percent, with 635 boats sold, and average pricing also increased, in this case by 5 percent, to $14,000.

The strongest results were reported among boats 46 to 55 feet, with 166 boats sold, a 12-percent gain over September 2013, and a total price paid of $46 million, a 25-percent increase. The average boat of this size sold for $279,000, some 11 percent more than a year earlier. In the 36- to 45-foot range, sales increased 5 percent and the total price paid was up 9 percent, driving average prices up from $121,000 to $126,000.

By comparison, superyacht sales were lower for the month, with 5 vessels changing owners compared to 9 the year before. Total value of the boats sold in the month was notably less, at $3.9 million compared to $26.5 million in 2013.

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