By John Burnham, Editorial Director
June 2010 unit sales in the United States yacht-brokerage market showed single-digit gains compared to sales in June 2009, the total valuation of those sales fell by 7 percent. According to reports by YachtWorld.com member brokers in the proprietary database SoldBoats.com, unit sales increased 6 percent, from 3176 boats to 3371, but sales valuation slipped from $307 million to $285 million.
Among boats over 55 feet, unit sales improved 21 percent compared to June ’09, but the total weight of the dollars changing hands for big boats lightened up considerably, from $98 million in June ’09 to $59 million in June ’10. This is a continuation of a spring roller coaster ride for big-boat brokers. Sales in March, April, and May this year were $148 million, $80 million, and $94 million, respectively. To date, it’s hard to see a defining pattern, but some brokers are no doubt feeling queasy on this ride.
By comparison, all other size ranges reported higher sales volume in June ’10 over June ’09, especially in the 36- to 45-foot range and the 46- to 55-foot range, which were up 18 percent and 23 percent, respectively. Sales valuations were also up modestly in all sizes 26- to 55-feet, from 7 to 20 percent.
Compared to a five-year average for unit sales, which for June 2006-2010 stands at 3513 boats, last month’s numbers are significantly better than the two previous years, but well short of 2005-2007 when 3750-4000 boats were the norm. For the year to date, 2010 continues to show improvement over 2009, but as the economic recovery has flattened, the dramatic double-digit gains of the first quarter have now dropped to single digits, although for the year, units are still up significantly, at 19 percent, and valuations even more so, at 29 percent.
For the third straight month, the average time it took to sell a boat was over 300 days, which suggests that the market is still working through unsold inventory. Notably, although sailboats are taking just as long to sell as powerboats, their valuation in June transactions was up 12 percent while power was down almost 10 percent.
