Coming Down from Covid Mania and the 2024 Outlook
Welcome to 2024! Over the past few years, we have been bombarded with doom and gloom predictions. However, I vividly recall a phone conference with JP Morgan Chase in 2022 when my client’s private banker confidently declared that a “soft landing” was imminent. But is the sky really falling in 2024?
According to Gabrielle Lazaridis from BOAT International, there were 62 price drops applied to yachts over 24 meters in January 2024, marking a 121.4% increase from December 2023. However, Lazaridis points out that sales in January remained steady compared to the previous month. So, are these price reductions simply a correction of overinflated asking prices?
BOAT INTERNATIONAL: Brokerage report: new year invites 121% spike in price drops
IYBA COMPASS Magazine: Spring 2024
To shed more light on the situation, an article published in IYBA’s Compass Magazine compares boat sales numbers from 2022 to 2023. It reveals that global boat sales held steady in 2023, showcasing resilience in the face of normalizing demand, economic uncertainty, and rising costs. Industry analysts predict that while these challenges will persist in 2024, the long-term health of the boating industry remains promising.
The 2024 Yacht Sales Market Outlook
In conclusion, it seems that we are witnessing a correction in the high prices driven by the COVID-19 pandemic. The inflated values that accompanied unprecedented demand are now being shed, and we are returning to a more normalized market similar to that of 2019. While this may disappoint those who overpaid, I believe it is a positive and necessary adjustment. Moreover, there are still plenty of cash-ready buyers patiently waiting for yacht prices to correct before making their move.
For an analysis of your vessel’s current market value or to discuss your future yacht program contact Andrew at 954-732-0339.
To Discuss Your Yachting Needs
Contact Andrew Troyer at 954-732-0339
Andrew.Troyer@TroyerYachts.com
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