By most accounts this past quarter was uncharacteristically busy and the traditionally busiest quarter is now upon us, but with the twist and turns of a frothy stock market and upcoming U.S. Presidential election it’s anybody’s guess how the used jet market will perform. It’s clear, however, that low pricing and tightening, but still plentiful, supply continues to attract buyers.
Some markets run hot and cold. Take the Falcon 2000 market right now. In August last year there were only six for sale. Today there are 32. That number has doubled since the beginning of the year, rising from 15. The 32 for sale today equates to about 14 percent of the number in operation. They are selling at rate of one per month, which places the current supply at a 24-month absorption rate. Prices have averaged in the low-$4 million range, according to AircraftPost. The aircraft that have sold this year must have been priced right, as their average time on the market was a respectable 139 days. Pricing alone will bring buyers back in droves like last year. Models seem always to fluctuate between overbought and oversold, with pricing the catalyst that drives the markets in both directions.
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