Used Jet Prices Continue to Decline in November, Signaling Market Shift

Declining Prices in the Used Jet Market

The latest market findings from Sandhills Global highlight a noticeable decrease in asking prices for used jets, extending a trend that has been observed throughout November. According to recent reports, pre-owned jet prices experienced a drop of 2.35% month-over-month and a steep 6.16% year-over-year. Coupled with October’s data, where prices increased by roughly 1.75% month over month, the current decline marks a significant shift in the market dynamics.

Inventory Trends

Interestingly, while asking prices for used jets are declining, inventory levels have increased by 5.17% from the previous month, albeit decreasing by 13.88% compared to the same time last year. This contrast suggests varying market forces at play, particularly as inventory levels reflect a continuing downward trend.

In the turboprop segment, asking prices have seen slight increases; however, the inventory levels reflect bolstered numbers, with a 0.7% rise month-over-month and a substantial 9.16% increase year-over-year. This segment of the market seems to be experiencing more stability, with asking prices rising by 1.24% month-over-month and 1.18% annually.

Helicopter sales, specifically the Robinson piston models, have also shown fluctuations. Here, inventory decreased by 1.08% month-over-month and 23.33% on a year-over-year basis. Unlike the jet category, asking prices for these helicopters are trending upwards, having increased by 6.1% month-over-month and 1.95% year over year.

Market Insights

Brant Washburn, Controller Department Manager at Sandhills, noted that although inventory levels for used jets are rising, the asking prices have taken a downward turn, highlighting market volatility and possibly changing buyer behaviors.

The Sandhills Equipment Value Index (EVI) remains crucial for buyers and sellers aiming to navigate these fluctuating conditions effectively. The EVI serves as a crucial tool, enabling stakeholders to assess market conditions comprehensively, ensuring informed buying and selling decisions. It includes a blend of auction and retail market data, further augmenting its reliability as a benchmark in the industry.

As we look deeper into the mechanics driving these trends, the result is indicative of a periodic adjustment within the aviation sector. Market participants are advised to monitor the asking value shifts closely as these fluctuations bear significant implications for acquisition strategies and price negotiations moving forward.

In terms of specific aircraft categories, a considerable drop in sales occurred among light jets, which saw prices decrease by 4.09% from the previous month. Large jets reflected the most significant yearly fall, a troubling 6.83% decrease, emphasizing the need to evaluate future investments carefully.

Conclusion

These insights paint a complex picture of the used jet market, which is currently experiencing a harmonious blend of rising inventory and falling prices. As investors and operators adapt to this evolving industry landscape, staying informed through reliable indices like the Sandhills EVI will be paramount for success in taking advantage of emerging opportunities in the used aircraft market. The focus on data-driven decisions will likely pave the way for better engagement in future trading, ultimately stabilizing the market condition for both buyers and sellers alike.