We are now solidly into the second quarter of 2024. Some trends are starting to solidify that can provide a picture of current market conditions, but it’s still a pretty mixed bag out there.
A few notes:
Jet Resale Market
- After a dip in inventory levels following a strong Q4, supply has again started to climb, already exceeding peak 2023 levels.
- 2% of the active fleet of aircraft is currently listed for sale, which indicates a shift from a Seller’s market to more of a Buyer’s market.
- Average asking prices took a large dip in December, and had a further slight drop last month.
- The number of retail transactions that took place during Q1 was well off numbers from the last few years.
- The sales cycle has also been increasing with the average days on market for Jet aircraft reaching 246 days.
Turboprop Resale Market
- Most of the trends on Turboprops mirror that of the Jet market, albeit not quite as drastic.
- Inventory levels did drop at the end of last year and have already climbed above peak 2023 levels.
- However, only 4.4% of the active fleet of aircraft is currently for sale, making this a more balanced market for the time being.
- Average asking prices have been mostly steady since December of 2023.
- Transaction levels for Q1 have also been below that of recent years in the turbo-prop market.
- The sales cycle on turboprops looks very similar to that of Jets with the average aircraft listed for 232 days.
All this to say, the trends seem to point to a bit of a market shift, but activity in the marketplace still seems robust and buyers are still making offers on aircraft that are priced right. However, they do seem to be more discerning and are very cognizant of overpaying. It’s a market where having access to all the data (inventory levels, comparable sales prices, pending sales, off-market aircraft, asking price changes, etc.) is very important to ensure that you can negotiate the best deal possible, in light of current market conditions, whether you are on the buy side or sales side.
Each market is unique; some are experiencing quickly changing prices while others are much more stable. In such a mixed market, having the most current and accurate information is more important than ever.
If you would like to discuss any particular market, get a current estimate of fair market value on your current aircraft or look at pricing trends on an aircraft you may be considering purchasing, please let me know and I’ll be happy to provide any information that might be helpful.
Kind regards,
Toby Smith