Boat sales in Washington remained slow overall in the second quarter of the year, but there are encouraging signs that the industry may finally be starting to turn around.

New boat sales were sluggish, declining 33 percent over the second quarter of 2008 in the number of boats sold. But the rate of decrease slowed from the first quarter of this year, when new boat sales were down more than 56 percent.

Used boats sales fared much better, with a drop of 6.6 percent in the number of boats sold, compared with a decline of 27.5 percent during the first quarter of the year—a sign that the pent-up consumer demand brokers and dealers have been waiting for may finally be starting to materialize.

“We’re looking for any indication of a slight turnaround,” said John Thorburn, director of communications and marketing for the Northwest Marine Trade Association. “I think this might be the quarter that’s starting to indicate that we’ve reached the bottom.”

Alan Bohling, CEO of Seattle Boat Co., was similarly optimistic. “The used boat market is alive and well,” he said. “There’s still a significant lack of interest in new boats and especially in larger cruising yachts, but the pre-owned boat market is really doing quite well.”

Al Hayes had a different perspective. The president and CEO of Gig Harbor Yachts, Hayes said he looks at the dollar value of boats sold rather than the number of units as an indicator of his company’s financial health. While dealers may be starting to sell more boats than they were a year ago, Hayes said it remains difficult to move larger boats with higher values that help bolster the bottom line.

“Boats that are in the $150,000 range and above, those boats are a hard push,” he said. “It takes a long time to sell them and there certainly aren’t many buyers right now.”

Private sales of used boats jumped 20 percent last quarter, with 9,491 boats sold from April through June, almost 1,600 more than the same period last year. Though the uptick may not help struggling dealers and brokers, Thorburn said it shows encouraging evidence of renewed interest from buyers.

Buyers could be motivated by a number of factors, he said: bargain prices offered by owners anxious to sell, tightened consumer financing prompting more cash purchases, and an unusually warm, sunny summer around Puget Sound.

“This has been a great summer in terms of weather,” Thorburn said. “I think a lot of people are seeing boating as a way of having a ‘staycation’ and getting out with the family.”

Boats 26 feet and under make up 90 percent of the state’s boat sales annually. Last quarter’s figures reinforced that trend, with boats 22 feet and smaller making up 88.7 percent of used boat sales and 76.7 percent of new boats sold. By contrast, just two new boats and 14 used boats larger than 70 feet were sold, essentially the same numbers as the same period last year.

The Seattle Boat Show at Shilshole Marina, on through Sunday, will be an important gauge of whether the region’s boat industry is finally on the rebound. The show is being held at Shilshole for the first time in four years, following the marina’s renovation, and includes around 200 new and used boats ranging from about 15 to 70-plus feet.

“The industry has a long way to go to climb out of the hole,” Thorburn acknowledged. “But there are encouraging signs. Having a hot, hopefully long summer will certainly help create opportunity for selling boats.”

About Deborah Bach

Deborah Bach is the editor and co-founder of Three Sheets Northwest. She is an avid sailor and long-time professional journalist. You can find Deborah aboard Three Sheets, an Island Packet 38, with her husband Marty and their cat Lily.

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