Have used boat prices peaked?

[HangOutdoors]

I personally think those whom are looking to purchase a used boat, will have many too choose from and great success as the prices continue to trend downward over the next 3-5 months.

 

[BlkGS]

I personally think those whom are looking to purchase a used boat, will have many too choose from and great success as the prices continue to trend downward over the next 3-5 months.

I think those people will be absolutely crushed by interest rates then. Interest rates will be 2 to 4% higher by then. The Fed looks set to keep rising interest rates by .75% every month for a while.

 

[adrianp89]

I think those people will be absolutely crushed by interest rates then. Interest rates will be 2 to 4% higher by then. The Fed looks set to keep rising interest rates by .75% every month for a while.

Saw something to likes of: a person who bought an early Covid home at 650k pays the same mortgage of someone buying a 300k home today.

My wife keep talking of a new house but we have more than we paid for it in equity with a 2.75% mortgage. I couldn’t fathom a 7% mortgage note on my personal home.

 

[FSH 210 Sport]

Be patient, prices will continue to drop.

 

[the MfM]

I’ve been seeing more side of the road for sale signs…and more pontoon boats online then ever before. For prices that wouldn’t have lasted hours last year.

 

[TimW451]

‘it’s the season to sell you vacation home, boat, and other seasonal merchandise. I see the same houses for sale every September, hoping for a suc, er buyer. PM me if you need a lawn mower.

 

[BlkGS]

Saw something to likes of: a person who bought an early Covid home at 650k pays the same mortgage of someone buying a 300k home today.

My wife keep talking of a new house but we have more than we paid for it in equity with a 2.75% mortgage. I couldn’t fathom a 7% mortgage note on my personal home.

Same, I was talking to some guys at work about it. If we were to ever buy a new home, we would keep ours and rent it. We are at like 2.25%, we will never see that again.

A friend at work has been looking to buy a condo or townhouse. His mortgage will literally only be like 300 bucks a month cheaper than our house.

 

[FSH 210 Sport]

I’ve been seeing more side of the road for sale signs…and more pontoon boats online then ever before. For prices that wouldn’t have lasted hours last year.

I think we are still a ways from the bottom and a buy point. A lot of potential buyers are not in a position to buy anything.

Saw this vid the other night…. Take it with a grain of salt.

 

[HangOutdoors]

There is a ways to go, prices will continue to come down and interest rates will continue to rise. I figure mortgages will peak around 6.5 - 7.0 on a 30yr and then level off. Recreational loans will probably be around 9% and then level off. I would say within the next 12 - 18 months. Homes on average will lost a clean 10%-20% which is were the real value would of been pre Covid give or take. Yamaha will get to suck it and pull their surcharge off and dealers will start getting incentives and sales will come back. But it is the way of things. Nothing to get worked up about, just prepare for all of it with a good strategy.

 

[the MfM]

There is a ways to go, prices will continue to come down and interest rates will continue to rise. I figure mortgages will peak around 6.5 - 7.0 on a 30yr and then level off. Recreational loans will probably be around 9% and then level off. I would say within the next 12 - 18 months. Homes on average will lost a clean 10%-20% which is were the real value would of been pre Covid give or take. Yamaha will get to suck it and pull their surcharge off and dealers will start getting incentives and sales will come back. But it is the way of things. Nothing to get worked up about, just prepare for all of it with a good strategy.

I’ve been hoarding cash and making a shopping list. But if (when) the s and p 500 goes below 3500 I’m going start investing some. 3000 and I’m all in. The wife’s Volvo can go another 50k at least!

 

[adrianp89]

Meanwhile the guys down the street are selling a 2016 AR192 for 40k. It’s been on their lot for ever, maybe a year now. If it’s November and still there I may go offer them 25k lol

 

[BlkGS]

There is a ways to go, prices will continue to come down and interest rates will continue to rise. I figure mortgages will peak around 6.5 - 7.0 on a 30yr and then level off. Recreational loans will probably be around 9% and then level off. I would say within the next 12 - 18 months. Homes on average will lost a clean 10%-20% which is were the real value would of been pre Covid give or take. Yamaha will get to suck it and pull their surcharge off and dealers will start getting incentives and sales will come back. But it is the way of things. Nothing to get worked up about, just prepare for all of it with a good strategy.

I think rates will end up a bit higher personally. I think home price losses will vary greatly by area. Boom towns like Austin, Charlotte, Boise, etc will see steeper losses, and the good weather states like FL, GA, most of TX, etc will see much slimmer losses. Some area may not even really pull back, Orlando and the space coast I could see not dropping at all.

The real thing that's a wild card is the corporate real.estate investment. A lot of big companies with a lot of money bought into the housing market to send it into overboost. They have enough money they don't need to sell for a loss, and can just rent them out if needed. I think that's going to have stabilizing effect on housing prices, they won't sell for less than their profit target, and that will sustain prices at a higher level.

 

[mwalker4]

I think rates will end up a bit higher personally. I think home price losses will vary greatly by area. Boom towns like Austin, Charlotte, Boise, etc will see steeper losses, and the good weather states like FL, GA, most of TX, etc will see much slimmer losses. Some area may not even really pull back, Orlando and the space coast I could see not dropping at all.

The real thing that's a wild card is the corporate real.estate investment. A lot of big companies with a lot of money bought into the housing market to send it into overboost. They have enough money they don't need to sell for a loss, and can just rent them out if needed. I think that's going to have stabilizing effect on housing prices, they won't sell for less than their profit target, and that will sustain prices at a higher level.

They are renting the properties out. Rent will go up with the interest rates. People who can't buy will rent. It's great to have rental property with locked in interest cost but your competition is seeing costs increase dramatically.

 

[Jim_in_Delaware]

Saw something to likes of: a person who bought an early Covid home at 650k pays the same mortgage of someone buying a 300k home today.

My wife keep talking of a new house but we have more than we paid for it in equity with a 2.75% mortgage. I couldn’t fathom a 7% mortgage note on my personal home.

Our first mortgage, 1993, was just under 8%. At that time, we were happy to pay such a rate to more into our first home.



I can tell y'all that it's a tough thing to be building a new home in this market. In our area, a custom build currently takes about a year. We went under contract in February 2021 (interest rates about 2.75%) and closed on the house in March 2022 (interest rates with a 30-day lock of 4.125%, although the market rates were about 4.5%). If one was to put a house under contract now, who knows what the actual rates would be when the house was delivered.

I think as homeowners, most of us have been spoiled by the low, recent, interest rates. It has allowed us (myself included) to be able to afforded much larger (or more expensive) homes than we previously could have afforded.

I am somewhat concerned that some people seem to find current rates abnormally high, and are considering ARM's (adjustable rate mortgages) as a means of affording a mortgage. These folks will be under a huge risk of losing their homes if rates continue to rise.

Jim

 

[Jim_in_Delaware]

I think rates will end up a bit higher personally. I think home price losses will vary greatly by area. Boom towns like Austin, Charlotte, Boise, etc will see steeper losses, and the good weather states like FL, GA, most of TX, etc will see much slimmer losses. Some area may not even really pull back, Orlando and the space coast I could see not dropping at all.

I would also agree that home price decreases will vary by market area. I can tell you that in my area, the real estate market is very tight, with slim pickings for used homes and lots of new homes being built. I expect to see very little (if any) downward movement in home prices in my area. New home construction is slowing, but I would bet a lot of future home owners decide to build smaller homes to stay within their budget as interest rates rise.

Jim

 

[HangOutdoors]

I was trolling Facebook Marketplace this morning and looking around at other local sites where boats are being listed, this morning. There are so Many Boats for sale and a lot of Yamaha's its bewildering. For the majority I am seeing a lot of prices that are coming down across the board. A few holdouts that probably will not sell.

 

[Jim_in_Delaware]

I personally think those whom are looking to purchase a used boat, will have many too choose from and great success as the prices continue to trend downward over the next 3-5 months.

This is one of the reasons that I'm hesitant about putting a deposit on a new boat. While I love the new AR220's, if I can get a lightly used AR250 for about the same money, I may go that route instead.

The other is that I still can't definite decide what I want to do with my money - do I buy a larger, more expensive boat or a smaller, less expensive boat AND buy a small camper?

Jim

 

[HangOutdoors]

I would also agree that home price decreases will vary by market area. I can tell you that in my area, the real estate market is very tight, with slim pickings for used homes and lots of new homes being built. I expect to see very little (if any) downward movement in home prices in my area. New home construction is slowing, but I would bet a lot of future home owners decide to build smaller homes to stay within their budget as interest rates rise.

Jim

Simple supply and demand. If the trend continues with rates climbing there will be a lot less money and New Home sales as well as used home sales will falter. There most assuredly will be those whom are underwater with their Covid Purchased/Built Homes, or at the very least their equity will evaporate. Regardless of Market. Of course those whom are not interested in selling their home anytime soon will eventually recover, Probably. It will be a long time time before/if rates will be as low as we have seen them if ever. The Covid Pandemic was the catalyst, and unless we go through some other type of large pandemic/crises the Fed probably learned their lesson on runaway inflation which they will be unable to control. Also all the free money and handouts/bailouts won't probably happen again either. That also was another massive catalyst.

Those whom are fortunate enough to pay cash for homes, boats, cars, Recreational Vehicles and such will be in a great position in the up and coming years.

 

[Jim_in_Delaware]

It's hard to predict the future value of a specific home. We bought our first home in 1993, and for the next 10 years, or so, saw very little gain in equity due to increasing home prices. The next ten years were a different story, as home prices doubled in that period of time, much of it in small spurts.

Had a boss retire and sell his home so that he and his wife could tour the country in a motorhome. After a year and a half on the road, they returned to the area and found they could no longer afford the home they sold 18 months earlier. They ended up buying a townhouse for the same money they had received for their single family home.

Jim

 

[BlkGS]

Our first mortgage, 1993, was just under 8%. At that time, we were happy to pay such a rate to more into our first home.

View attachment 188528

I can tell y'all that it's a tough thing to be building a new home in this market. In our area, a custom build currently takes about a year. We went under contract in February 2021 (interest rates about 2.75%) and closed on the house in March 2022 (interest rates with a 30-day lock of 4.125%, although the market rates were about 4.5%). If one was to put a house under contract now, who knows what the actual rates would be when the house was delivered.

I think as homeowners, most of us have been spoiled by the low, recent, interest rates. It has allowed us (myself included) to be able to afforded much larger (or more expensive) homes than we previously could have afforded.

I am somewhat concerned that some people seem to find current rates abnormally high, and are considering ARM's (adjustable rate mortgages) as a means of affording a mortgage. These folks will be under a huge risk of losing their homes if rates continue to rise.

Jim

I saw an ad for the return of ARMs like a year ago and said "thats a really bad sign". ARMs are the canary in the mine for the supply of semi intelligent buyers evaporating. It's the mortgage equivalent of "I'm a Nigerian prince and will give you million dollars to let me use your bank account to bring money into your country".