Market at a Glance

As we close out the year, the California boat market has settled into its expected holiday-season rhythm. While activity has naturally slowed from the fall, we are seeing, at least anecdotally here at 50 North, stronger late-year activity than we’ve experienced in the last few years. Whether that trend holds across the broader market will become clearer in the months ahead, but it is an encouraging signal as we look toward early 2026.

Financing conditions have improved meaningfully compared to earlier in the year, and the broader economic backdrop has become more stable. Rather than sharp swings or headline-driven reactions, the marine market this year has felt deliberate and value-driven, with buyers moving carefully and thoughtfully.

While some buyers continue to frame the environment as a buyer’s market, we’re simply not seeing widespread value erosion. Many sellers appear willing to hold their boats longer in order to achieve what they believe is fair value, even if that means extended time on the market. In many cases, that patience has reduced urgency on the sell side, with listings remaining active until expectations align rather than prices being forced downward.

California Sales Snapshot (Power Boats, November 15 – December 15)

Reported power-boat sales across California reflect a predictable seasonal slowdown as the market moves into year-end. Compared with the previous period (October 15 – November 15):

  • 28 boats sold between $100K–$250K (down 13 boats from last month)
  • 20 boats sold between $251K–$500K (up 1 boat from last month)
  • 3 boats sold between $501K–$1M (down 8 boats from last month)
  • 3 boats sold between $1M–$2M (down 5 boats from last month)
  • 0 boats sold above $2M (no change)

This decline is very much in line with historical patterns as buyers pause around the holidays. That the $251K–$500K segment actually saw a slight increase is notable and reinforces the strength of the core mid-market even during one of the slowest stretches of the year.

Year-Over-Year Market Comparison (California Power Boats)

While December reflects short-term seasonality, the year-over-year numbers provide a clearer view of how the market has evolved. The following compares full-year 2024 to year-to-date 2025 (with some late-year 2025 transactions still to be reported):

  • $100K–$250K:
    448 boats sold in 2024 vs. 375 in 2025 YTD (down 73 units, ~16%)
  • $251K–$500K:
    198 boats in 2024 vs. 193 in 2025 YTD (down 5 units, ~2.5%)
  • $501K–$1M:
    104 boats in 2024 vs. 97 in 2025 YTD (down 7 units, ~6.7%)
  • $1M–$2M:
    36 boats in 2024 vs. 40 in 2025 YTD (up 4 units, ~11%)
  • Above $2M:
    11 boats in 2024 vs. 14 in 2025 YTD (up 3 units, ~27%)

Overall, 2025 shows less volume at the lower end, remarkable stability in the core mid-market, and strength at the top end, a healthy mix for the market.  We’ll see these number change a bit as the final sales trickle in for 2025 which appear to be fairly strong compared with historical standards for this time of year.

Financing Environment: Year-Over-Year Progress

One of the most important shifts in 2025 has been financing. Last year and early in the year, higher rates created hesitation across multiple segments. As the year progressed, and particularly following the Fed’s rate cuts, marine lending is seeing meaningful improvement.

Compared to where we started the year, when higher rates sidelined some buyers, today’s financing environment represents a meaningful shift. With rates now available as low as 5.99% OAC and most qualified borrowers landing in the 6–6.5% range, financing has moved back into a workable zone for long-term ownership. That change has already shown up in improved engagement across several market segments and creates a positive outlook as we head into 2026.

Macro & Industry Themes from 2025

Several macroeconomic forces shaped the marine industry in 2025, but the impacts were measured rather than dramatic. Inflation pressures eased over the course of the year, allowing interest rates to peak and begin moving lower. That shift helped restore confidence across credit markets after a slower start to the year.

Fuel prices also moved in a more favorable direction. In addition to easing geopolitical pressures, strong U.S. energy production helped stabilize supply, reducing volatility and keeping operating costs more predictable, an important factor for boaters across all size ranges.

Within the marine industry, 2025 was a year of adjustment. New-boat sales softened significantly, while brokerage activity proved more resilient as buyers focused on value and availability. Brokerage inventory continued to rebuild from post-pandemic lows, but without the price disruption many expected. Instead, the market reflected more deliberate, informed decision-making on both sides of the transaction.

Technology & Innovation Highlights

Technology gains in 2025 were less about flashy concepts and more about tools owners are actually using. One interesting trend, in our eyes has been the continued adoption of integrated digital vessel systems, such as Garmin OneHelm, Raymarine YachtSense, and similar platforms that centralize navigation, monitoring, digital switching, and onboard systems into a single interface. These systems are now common on new builds and increasingly requested in refits, helping simplify ownership and improve reliability.

Connectivity also took a meaningful step forward. Satellite-based internet, led most visibly by Starlink, has become far more common on both cruising yachts and mid-size boats, giving owners reliable offshore connectivity for weather, navigation updates, and communication. What was once considered a luxury add-on is now viewed by many as a practical safety and planning tool.

Alongside this, gyro stabilization systems continued to move down-market in 2025, appearing on a broader range of boat sizes. Comfort at rest and underway is no longer reserved for large yachts, and buyer expectations have adjusted accordingly.

Overall, the technology story this year has been about practical upgrades that improve the day-to-day boating experience, something we see and appreciate firsthand in the way our clients are using their boats.

Perspective & Looking Ahead

Stepping back, 2025 was a year that required patience, realism, and perspective across the marine industry and certainly here at 50 North. Buyers became more deliberate, sellers adjusted expectations around timing rather than price, and the market responded to improving financing conditions and a more stable economic backdrop as the year progressed.

As we look ahead to 2026, several factors are aligning in a constructive direction: lower and more workable interest rates, improved insurance availability, easing operating costs, and continued investment in technology that enhances the ownership experience. While uncertainty will always be part of any market, the signals heading into the new year are clearer and more supportive than they were twelve months ago.

As always, we appreciate everyone who takes the time to read these reports and engage with the data and perspective we share. We’d welcome your feedback on what you’d like to see covered in 2026.

From all of us at 50 North, thank you for your continued trust and interest. We wish you and your families a wonderful holiday season and a healthy and prosperous 2026.