As Old Man Winter grips many parts of the United States a common question I am asked is "Should I sell now ... or wait for spring?"
To answer this question we can roll back the clock to our Junior Economics class where Mrs. Glendowski regailed us with the riveting rhetoric of Supply and Demand.
Every year as winter arrives thousands of RVs and RVers go into hibernation for 4-6 months in many parts of the country. Demand in those areas slows down, and the supply from sellers is lower.
Meanwhile, in the South and here in the Southwest, we carry on happily enjoying our Airstreams year around. From the Florida Keys to the California Coast, "winter" camping can be the best time of year to go RVing.
So market demand continues in many parts of the country, but overall supply tends to shrink. And that's a good thing for Sellers, and its why I typically advise sellers to get on the market now, rather than waiting until Spring ... UNLESS you are in an area that makes delivery and transport a problem like our friends in Buffalo right now.
Now this year, we have an even bigger factor to consider.
The current market demand for new towwable RV's is down nearly 50 percent from last year. That's HUGE.
RVIA stats just released show shipments of "Towwable RV's, led by conventional travel trailers, ended the month down 48.3 percent against last October with 27,329 shipments compared to last years 52,856. Interestingly, motorhome shipments are UP 4.1 percent compared to the same period last year.
So we are seeing two things - demand for new towwable RV's is slowing DRAMATICALLY as the pandemic winds down and interest rates ramp up. And, there is a shift in the market for demand of Motorhomes vs. Travel Trailers, largely driven by the demographics of those every aging Boomers.
The economic outlook for next year is uncertain at best, and I would expect these slow travel trailer sales to carry on through 2023. Any my price prediction for 2023 can be summed up in one word: LOWER. I don't see anything that suggests pre-owned prices will be higher next year than they are currently.
So when answering the question "now or later", my answer is an emphatic NOW.
If you are considering selling and need some advice on your particular situation, book a FREE CONSULTATION with me and let's discuss it.
Happy Thanksgiving !
Ward
