Folks sitting on the sidelines watching the used airplane market threw around words like over-inflated and bubble to describe the rapid rise of prices and decrease of inventory we’ve seen over the last few years. But, now, with interest rates climbing and the stock market fumbling, what would traditionally have burst said bubble hasn’t had a major impact.
That’s not to say there haven’t been some slowdowns. Last summer was noticeably slower, according to Eagle Creek Aviation’s Jim Worrell. Summer is always a slower time for transactions, and Twin Commanders saw a bit of a pause like most owner-flown markets. But, like flipping a switch, things are hot again.
In his now-familiar refrain, Naples Jet Center’s Bruce Byerly said, “I need airplanes.” He has buyers ready and waiting, and he continues to search for the right airplane for their needs. What is listed continues to move quickly.
Worrell agrees. “I don’t have enough aircraft to meet the demand.” The end of the year is always a push, and with 100 percent bonus depreciation expiring this year, that’s even more true than normal. He estimates activity is up around 200 percent just in the last month.
Byerly and Worrell both think prices have peaked. “But with only a little bit of inventory it’s hard to draw a conclusion,” Byerly said.
Next year could bring a more balanced market. Continued rate hikes and the end of 100 percent depreciation might mean a bit less demand, although that’s not necessarily a bad thing. Most brokers prefer a balanced market where buyers and sellers can be served equally. Prices aren’t expected to drop substantially. Continued low inventory will keep Twin Commanders a unique and desirable option in the owner-flown world.
