The State of the Brokerage Market
With people being unable to take cruises and vacations in the same way they used to, we expect to see a continued trend of individuals looking to buy yachts. Summer is rapidly approaching, and now is the perfect time to capitalize on the increased demand for boats of all shapes and sizes. Whether you are looking to upgrade your vessel, or looking for your first boat, our brokers are ready to assist you.
After all - socially distancing is more fun when you can enjoy the freedom of being out on the water, exploring new places, and embarking on new adventures!
I’ve been a yacht broker for over 30 years now, so I have seen a lot of ups and downs: the 1987 stock market crash (down!), the late years of the dotcom boom (up!), the 2008/2009 financial meltdown (down!), to name a few.
A year ago, I stated to the team at David Walters Yachts that they needed to be ready for a slow period. It seemed apparent to me what was about to happen. I was right for about 4 weeks. And then I was really, really wrong.
We’ve had a year unlike any other.
Here is just one example: In February 2020, I had a contract on a very nice Hylas. For some reason, the buyer got cold feet and walked away. In May, she sold for $14,000 more than the previous accepted price. That has probably never happened before.
I genuinely believe that many people who thought they would purchase a new boat soon decided that “soon” was “now”. We were hearing from so many buyers. Boating is tailor-made for social distancing, of course.
So, yes, there has been upward pressure on prices for quality, well-maintained boats. And these boats don’t last long on the market. Many buyers have been frustrated by the need to act quickly. When your broker tells you to make a “sight-unseen” offer, it’s not a high-pressure sales tactic. We don’t do that! It’s often simply the truth.