Golf Inc. Magazine: What to Expect in Sales for 2013 ~ Steven Ekovich

by / Monday, 16 December 2013 / Published in Company News, Golf, Master Planned Communities, Resorts

Expect the sales market to move towards equilibrium

To predict investor buying patterns, market cycles, inventory and seller sentiment relative to golf course properties for this year, it is enlightening to look at where we have come from the last few years.

For example, the average golf course was on the market for 328 days in 2010 compared to 348 days in 2011.  In 2012, the average time on the market dropped to 309.  this decrease could be an indicator that there has been more demand for golf assets, or it could mean the sellers have become more practical.  We believe the former is a more reasonable assumption when you correlate the rest of the data.

Comparable sales, as reported by countries nationwide, can be three to six months behind, so when this column was written, we were looking at data for the first three quarters of 2012.  Bulleted below is a number of statistical trends that allow us to forecast the future with some degree of certainty.

  • After five straight years or revenue and rounds declined, 2012 reverse the trend.  According to an NGF report, rounds were  up 7.4 percent through September.  Performance Trak shows golf ees revenues up nearly 9 percent at member golf facilities and similar sized gains in food and beverage and merchandise revenues.
  • 2011:  94 sales (13 without prices) vs. 2012:  112 sales (15 without prices)

We are about a quarter behind in reporting; consequently

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