Today’s Yacht Market

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The state of the current US yacht market

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Today’s Yacht Market

  1. 1. Yacht Market Update 11/6/2013 1
  2. 2. US Boaters (millions) 78 76.6 76 74 72 70 70 68 66 2002 2011 • Almost a quarter of Americans, 23.8% went boating in 2011 • Up 6% from 2002
  3. 3. Boater Demographics Age 30.4 28.8 25.2 26.9 27.3 24.8 22.7 17.3 75-95 66-74 55-64 45-54 35-44 25-34 16-24 12-15 0-11 8.2 • Young to middle aged adults significant part of boating community, 2544 • Current cruising population 55-74 makes up 42% of boaters
  4. 4. Boating by Boat Type 51.1 40 10.7 Powerboat Sailboat Other • More than 50% of boaters did so on power boats • 10% boated aboard a sailboat and • 40% boated on canoes, PWC, pontoon etc.
  5. 5. Number of Boats • 17% of US households own one or more boats, down from 19% in 2000 (millions) 22,217 8,603 6,258 3,606 3,750
  6. 6. Ownership Boat Type Powerboat Sailboat 56.3 51.1 42.3 3.7 US 6 Northeast 2.9 South • Of households owning boats, more than 50% owned powerboats • Average age of a cruising boat in use today is about 21 years • The number of registrations since 2000 down about 3%
  7. 7. Most Popular Boating Activities 75.3 70.3 65 48.5 Socializing Cruising Sightseeing Fishing 46.9 Diving
  8. 8. Boat Sizes 48 37 8 3 4 Under 16' 16-25' 25-39' 40-65 5 and larger 6 • Some 48% of boats owned in the US are less than 16’ long • About 85% are 25’ or less • Boats larger than 40 feet compose only 12% of boats on the water
  9. 9. Financing • Rates – $25,000 to $49,999 5.99% – $50,000 to $100,000 4.49% – $100,001 to $2,000,000 4.37% • 800 credit score - .25% • 30% down - .25% • So a loan of $100,001 with 800 score and 30% down is 3.87%
  10. 10. Insurance • Insurance can be written on older boats • Older boats require surveys • My Florida insurance rate dropped 10% last year but climbed again this year – No named hurricane in Florida since Wilma, 2005 • After NE storms , there is talk about an entire east coast deductible
  11. 11. Boat Market Pros • Principle boat demographic, the Caucasian has increased 5.7% in past 10 years • 25% of Americans went boating in 2011, up 6% from 2002 • Current boaters aged 25-44 are the next generation of big boat buyers • Our website gets near 20,000 visitors per month Cons • Fleet of boats aging, average age of cruising boat is now 21 years old • Few new boats of all types have been built since 2008 • Many brokerage boats shipped out of country • Prices of new boats 40-65’ $500,000.00 and more • Many lookers – few buyers
  12. 12. • Poll tells the story • 84% of lookers hesitant to buy
  13. 13. US Boat Sales 30000 28230 28309 26436 25000 25044 24862 22838 20000 23961 24804 23863 21503 21216 Power 15000 Sail Linear (Power) 10000 7530 8406 8282 8150 7879 6549 5000 5542 5790 Linear (Sail) 5494 5507 5080 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 0 As of 11/6/2013
  14. 14. Boats on Market 12000 11119 10755 10000 8000 6000 Aug-13 3120 4000 3015 2000 1264 1231 1278 1197 Nov-13 796 721 394 427 Georgia SC Virginia NC Maryland Florida 0 As of 11/6/2013
  15. 15. Boat Market Summary • Market not dead, but slow • There are still potential buyers out there; potential buyers equal pent up demand • There is good financing out there • Buyers market is over; boats selling near or at asking prices • Increased competition for buyers; more available boats now than 6 months ago • Value of the boats sold increased significantly from $802 million to $938 million, a 17 percent rise. • The average number of days that the boats sold had been listed for sale increased also, up from 258 to 265 • Sales trends going down; fewer sales
  16. 16. 904/556-9431 paradiseyachtsales@gmail.com www.paradiseyachtsales.net 16

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