Let's start with a look at current supply and There's currently 11 aircraft actively for sale globally, which represents 7.9% of the total in-operation fleet. For those evaluating this inventory, the average asking price across available aircraft stands at approximately 2.35 million. But already down from a mid-summer peak, and as pricing settles, expect this number to keep easing. This is a fundamentally healthy market, heading into a season that typically brings increased demand. Looking back at the historical trends, retail sales have logged just over three transactions per month, with a peak of six aircraft in December, and again in May. That steady, full-year demand is giving us our current absorption rate around 5.1 months. In summary, This is a healthy market. With pricing correcting, and demand typically increasing heading into Q4, This market is leaning towards a seller's market, and I would give it a B market demand rating.
COMING SOON...
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Over the past year, inventory levels have risen slightly, up 1 aircraft from a year ago. Prices have increased significantly to 21% more than that of a year ago. M500s are selling at a slightly slower pace than this time last year, with average days on market up 62 days. There have been 23 retail sales over the past 12 months, which represents 18.2% of the 126 in operation, with 19 of those being pre-owned aircraft. Based on the recent supply and demand trends, there's currently about 6 months of inventory on the market for sale. In summary, this market is strong. Prices are at a premium from a year ago, and demand for M500s remains high.
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Inventory is currently at nine aircraft per sale, which is down 18% from a year ago. just 7% of the active fleet is available, which is healthy. Supply has contracted while demand has held. Pricing reflects this. The average pricing is around $2.56 million, up $216,000 from 12 months ago, a 9% increase. On velocity, there's 2.2 aircraft selling per month or 26 total transactions in the last 12 months.
0:49 Days on market sits at 263 days but that number is being pulled by overpriced listings that have sat for a long time. That brings absorption rate to 5.1 months, meaning that if supply shut off today, it would take 5.1 months for demand to absorb the current supply. That is a seller's market by far. The average sits around a year. So, if you own the, so, if you own a Piper M500, the math is in your favor right now. Low inventory, rising prices, and active buyers.
COMING SOON...
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