The cycles of the Yacht Brokerage Market and the effect Covid times had on it

The yacht brokerage market has experienced significant transformations over the years. When considering purchasing or planning to sell a boat, it is important to consider various factors, such as market trends influenced by fuel prices, the current price of boats in the market, and prevailing interest rates. 

Recently, there has been an unprecedented demand for boats for sale in the United States; however, there have been challenges in the supply chain, and the cost of boat manufacturing has notably increased. This situation may lead to a more substantial correction in the future. 

Despite the decline in new boat sales returning to pre-COVID levels, the price of purchasing a new boat has remained high, although certain boat manufacturers are offering additional incentives to maintain their backlog. Consequently, the yacht brokerage service market has exhibited stability in specific styles and manufacturers. On the other hand, those manufacturers who experienced an excess of boat production during the pandemic may face temporary stagnation and potentially require a more significant correction.

Since the initial signs of economic decline in Q1 of 2023, consumer hesitation has been particularly noticeable in the center console and bowrider boat markets, while the motor yacht and sportfish boat markets have remained steady. Fast forward to the present day, inventory levels have significantly increased, while boat sales have eased. This situation emphasizes the importance of the age-old saying “supply and demand.” Now, the big question is how the 2024 election cycle will impact the luxury and yachting markets.

The Covid Factor:

One of the most significant questions I often ask myself is about the increase in first-time boat ownership. How will these boat buyers impact the market? Will they continue to embrace the boating lifestyle and eventually upgrade from their entry-level boats? Will they be willing to bear the costs of annual boat maintenance and storage fees? 

Traditionally, once someone gets to enjoy the boating lifestyle, it tends to become a way of life, and they rarely look back. That said, the average boat owner holds on to a boat for three years and the time is approaching to see what route these first-time boaters take.

Looking ahead to 2024, it will be interesting to observe the trends and predictions for the yacht brokerage market. Like other markets influenced by financial variables, such as the stock market and interest rates, the yacht brokerage market is one to keep an eye on. As boats become increasingly expensive, some buyers may need to wait for their desired boat to fit within their budget. However, the larger boat market (85’+) is expected to remain active. 

The past three years have seen a surge in boat manufacturing, which will have an impact on most markets and affect the timing of buying and selling boats.

Whether you are a seller or a boat buyer, there are important factors to consider as we enter 2024.

Boat Selling Tips:

For Sellers, it is crucial to review the market with your yacht broker to determine an accurate price based on the market conditions and your motivation. Additionally, preparing your boat for sale by detailing and decluttering it before listing pictures are taken, having professional photographs and videos taken, and ensuring the boat is staged and ready to show always can increase its appeal to potential buyers when they come to see it. 

Boat Buying TIPS:

For Boat Buyers, it is essential to familiarize yourself with the boat market you are shopping in, as there will likely be multiple options available for each boat model you are considering. A good yacht broker can help guide you towards the top choices, the first step is to compile a list of the top five boats and visit each one to narrow down your selection. Factors to consider include year, pricing, equipment, and current condition of the vessel.

Selecting the right yacht broker is more important now than ever. Yacht brokers play a crucial role in connecting yacht buyers and sellers, offering expertise, guidance, and personalized yacht brokerage service. They have become trusted advisors who understand the unique needs and preferences of their clients. As the market continues to evolve, brokers must stay ahead of the curve by embracing new technologies and adapting their strategies to meet changing customer expectations.

Mordy Miltz | President

The Miltz Maritime Team 

United Yacht Sales

516.606.1282

www.miltzmaritime.com