As the driving season opened for the northern part of the country, the Hagerty Market rating continued to fall. Despite another 0.6-point drop this month, the rating still remains in the “rapid expansion” range at 71.77, though it will likely retreat into the 60s by the end of the summer.
The main take-away is that prices, adjusting for inflation, of course, have dropped down to pre-pandemic levels, but the market remains strong.
The Overall Auction Activity score has dropped to December 2021 levels. While the number of cars sold at auctions is at an all-time high, the receding median sales price—a low not seen since March 2020—held this score back. Despite softening macro-economic indicators, our industry experts have yet to see general economic concerns filter into the public classic car market—buyer confidence remains high.
Broader economic concerns appear to have leached into the private market, however. Private sales activity has continued to fall, dropping to its lowest point since October 2021—but is still a respectable 73 out of 100 on our scale. Owners who held on to their cars are not raising insured value at the velocity we saw during the last couple years. The ratio of insured value increases to decreases continues to fall for high-end vehicles as well as more mainstream classics,. However, for every phone call we get to lower an insured value, we still get nearly a dozen calls to raise values. At its height in fall 2022, this ratio was 1-to-17.
At the start of July, a new update to the Hagerty Price Guide will be released. The next Market Rating update will demonstrate whether the softening prices we've seen at auction have made their way into our Price Guide.