September 2023: Prices Remain High As Inventory Increases
In our latest market analysis, we've delved deep into the current state of the domestic used aircraft market, examining trends that are shaping the industry. We've observed a robust inventory for the used market overall, showcasing a significant 11% year-over-year increase, a trend that places us comfortably 12% above the 5-year average inventory level. However, it’s crucial to highlight the uneven distribution across different aircraft types.
When we break down the numbers, jets have experienced a substantial 52% increase in stock, a rate that significantly outpaces the more modest gains of 3% for pistons and 15% for turboprops. This stark contrast is a testament to the resilience of the piston market, as its current inventory sits at an impressive 23% higher than the 5-year average. On the other hand, turboprop and jet inventories find themselves below their averages at -14% and -5%, respectively, painting a picture of a market in flux.
Sales activity has been robust, with a strong 2.5% of the domestic registered general aviation fleet changing hands via the online market in the last 12 months. This figure not only surpasses last year's sales but also eclipses the 5-year average, showcasing a market that remains quite active. These sales have played a pivotal role in accommodating the increased inventory, all while supporting the higher prices that have become a new norm in the post-pandemic era.
Our Precision Aircraft Pricing Index (PAPI), a tool that has been meticulously tracking the pulse of the market, has observed a historic rise in aircraft values since January 2019. The data is stark, if now less surprising, with pistons, turboprops, and jets experiencing a staggering +68%, +57%, and +75% change in fair market price, respectively. The last year alone has been a period of significant growth, with a nearly equal 8% increase in piston and turboprop prices, and a 6% increase for jets at-large. Despite the turbulence caused by global market instability, our 30-day charts are showing no signs of a slowdown, with prices continuing their upward trajectory, suggesting that we may be a long way off from seeing a significant retreat from these all-time highs.
As we transition into October and brace ourselves for the winter season, our commitment to providing you with timely and accurate insights remains unwavering. We'll continue to monitor these trends closely, working to further equip the community with the knowledge and insights needed to navigate the current landscape of the used aircraft market. Whether you are a Buyer, Seller, or a keen observer, join our free newsletter list to be among the first informed when future market reports are made available.