International Aircraft Dealers Association members expect an uptick in resale expectations for used private jets in the next six months.
Most members say they expect a slight uptick, with 73% pointing to the midsize jet market as seeing the most significant boost.
Sixty percent (60%) believe there will be a slight uptick in turboprops for sale, while 59% see a slight increase in large jets.
Inventory for light jets is expected to increase slightly by 68% of dealers.
At the same time, most dealers expect a slight decrease in used jet prices in the next six months. Midsize jets (76%) are most likely to see a slight decline.
Large cabin jets are expected to take the biggest hit.
While 63% of dealers see a slight decrease in prices, 15% believe large cabin private jets will face a significant reduction, triple midsize jets, where just 5% of dealers forecast a big price drop.
Jet card prices in Q2 dropped for the second consecutive quarter, according to Private Jet Card Comparisons.
IADA’s dealers comprise just 15% of the world’s preowned private jet dealers. However, they account for 48% of used business aircraft sales.
During Q2, dealers said they lowered prices for 70 aircraft, up from 52 in Q1 and triple Q2 in 2022 when there were 22 price decreases.
IADA-accredited dealers account for over 1,100 transactions and $10 billion in annual volume.
“IADA members, who lead the business aircraft resale marketplace, indicated a continuing normalization of the balance between buyers and sellers, with a nearly even split between which group is driving the market,” said IADA Executive Director Wayne Starling.
He added, “Their view of the market is cautiously optimistic, particularly given the vagaries of the global economy,” he said.
In the first half of 2023, IADA dealers closed 542 deals, compared to 598 in the surge during the first half of 2022.
IADA members expect slight increases in aircraft supply for sale across all private jet categories.
According to the organization’s quarterly survey of its members, demand is expected to be stable.
“Overall buying interest is still present; however, buyers are now more concerned about the overall value they are getting from the purchase of an aircraft. Aircraft that are equipped well, have lower time, and great pedigrees are still getting a lot of love,” said James Norris of Omni Aircraft Sales in Tulsa, Oklahoma.
Despite more inventory, dealers say Covid-related supply chain and labor issues continue to complicate deals.
“It’s hard to find pilots, parts, training slots, and maintenance slots, making transactions more difficult and taking longer,” said Walt Wakefield of Jeteffect in Long Beach, California.
Looking forward, Josh Mesinger of Boulder, Colorado-based Mesinger Jet Sales noted, “We do not see a bubble bursting or any drastic price fall coming barring unforeseen major economic issues.”