Obviously the market for recreational boats has gone very soft as credit and disposable cash evaporate. This weakens the market and will drive all prices down as it did in the real estate market. I don't see why a similar loss of value will not work
its way through the entire boating
world. The signs are there.
Like the real estate bubble, with credit and disposable income
around boats became desirable "toys" and that meant there needed to be places to moor and dock
them, and all the support/business for the marine
As you can see the downsizing of the marine
industry with Boaters World going belly up and WM closing branches and then who knows what's next?
The sub prime may have started with the lower tier of home owners, but it also hit "speculators" in the real estate game
who over leveraged and took a haircut when credit dried up, and they couldn't move their properties except perhaps at a loss. This then drove the next tier of real estate prices down. And of course some top tier properties hit the market as the wealthy also saw their wealth evaporate and they pull back on their excesses. Villas, McMansions and huge expensive homes are up for sale
at greatly reduced prices. People in NYC
are walking away from six fugure deposits on apartments.
I think the same is happening in the recreational boating
world. Some people who need cash are finding that any "equity" that they had in their boats is not there. If they had a ship's mortgage they may be upside down, ie the boat
will fetish less than they owe on their mortgage, which is increasing difficult to pay for and a low priority.
I suppose this may induce partnerships and abandoned ships and will definitely mean a overall depression in the entire marine sector. As in any downturn in the market, those with cash can scoop up assets which are undervalued at great prices.