There are currently 15 aircraft actively for sale globally, which represents 18.8% of the total in-operation fleet. For those evaluating this inventory, the average asking price across available aircraft stands at approximately $657K, down 8% as low transaction volume has caused pricing to slide. In terms of transactional velocity, overall supply outweighs demand for this aircraft. The average time it takes for an available aircraft to transition to a new owner, the days on market, is currently 648 days. Looking back at the historical trends, there have been five total transactions over the last twelve months. That low transaction volume against available supply is giving us a current absorption rate of around 35.7 months. With a fleet this small, one sale can swing the numbers. In summary, there is potential for a Q4 demand boost, but this is still firmly a buyer's market. This market is leaning towards a buyer's market and I would give it a D market demand rating.
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Inventory is on the rise, up 7 aircraft from a year ago, with 16 total on the market. This represents 20% of the 80 total Lear 55s in operation. This not unusual for a fleet of this age, on average 43 years old. Prices are seeing a premium up 20% over the past year, or $115,000, with the average sitting right around $700,000. Sales rate has improved, with aircraft selling about 32% faster. Days on the market is down 178 days, a substantial decrease indicating improvement in buyer demand. This is supported by the fact that inventory is moving quite well. 10 aircraft have sold in the past 12 months, representing 12.5% of the total in operation fleet. Vintages of the aircraft that have sold span from 1981 to 1984. At this rate, there's enough inventory to supply the market for 19 months. Overall, the market is balanced. Pricing has remained steady while transaction rate has improved. Properly priced aircraft are selling, so right now is a good time for both buyers and sellers to transact. In summary, I'd categorize this market as a neutral market and give it a C demand rating.
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There's there's currently 18 Lima 55s for sale, up 7 aircraft from this time last year, a 64% increase. that represents 22.5% of the active fleet. Average asking price sits at $670,000. Year over year, that is up 5%. 72 days, which is down 114 days from a year ago, a 17% improvement. Eight aircraft traded over the last 12 months, averaging just over one aircraft every two months. At the current sales pace, absorption rate sits at 42.9 months, putting this on the slower side of transaction volume. Lear 55 is a market with an elevated inventory and extended sell timelines. Some metrics, however, have improved year-over-year, particularly days on market, and a slight improvement in asking price. So, if you own a Lear 55 and are thinking about your options, understanding current market conditions and realistic pricing is critical to getting a deal done.
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