There are fewer Citation Encores for sale than there were a year ago, but values are still falling, and average marketing time has more than doubled since last quarter. Low inventory would normally help support a market, so why isn't it happening here? We'll look at what's holding this market back, and what buyers are prioritizing today. Available inventory has declined by 2 aircraft, or 15%, compared to a year ago, leaving just 11 Encores publicly listed for sale. Normally, that kind of limited selection would help support values. Instead, average asking prices have fallen approximately 8%. That tells us scarcity alone isn't creating pricing power for sellers. The slower pace becomes clearer when we look at transaction activity. Average days on market have climbed to 152 days, up 23% from a year ago, and more than twice last quarter's average. Retail sales have also eased to 15 over the past 12 months, continuing the gradual slowdown we've seen throughout the year. Seven aircraft have traded so far in 2026, concentrated in 2001 through 2004 models. That brings us back to the question we started with. Why hasn't limited inventory supported Encore values? The short answer is, buyers aren't treating the 11 available aircraft as interchangeable. At 8.8 months of supply, they still have enough time and selection to compare each aircraft's maintenance history, retrofit status, specs, and the investment it may require after purchase. These are 2000 through 2006 airframes built around Honeywell's original Primus Avionics. ADS-B and WAAS retrofit status can create a meaningful distinction between aircraft. An Encore already equipped removes a future expense and complication, while buyers may discount an aircraft that still needs work. Equipment aside, the Encore's core appeal hasn't changed. But in this market, buyers are rewarding the aircraft that require the fewest compromises after closing. So, limited inventory is helping prevent a more significant decline, but it isn't enough by itself to create pricing strength. Values remain 8% below year-ago levels, aircraft are taking longer to sell, and transaction volume has gradually slowed. The market remains functional, but buyers have time to evaluate their options and remain disciplined about value.
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This market is tight, with the inventory levels declining 13% from one year ago. Pricing has also adjusted approximately 13% compared to this time last year. In terms of transaction activity, Encores continue to trade steadily. Days on market have decreased slightly, down roughly 1% year over year. There have been 19 retail sales over the past 12 months, with three of them occurring in December. Two additional Encores have transacted since the beginning of 2026. The vintages of the aircraft that have sold since the beginning of December range from 2001 to 2006 models. Based on the recent supply and demand trends, the market is only carrying approximately 4.7 months of inventory, reflecting a relatively tight supply environment. In summary, this remains a strong market. Inventory levels are low relative to demand. Overall, I categorize the Encore market as a seller's market and give it a B-demand rating.
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Over the past 12 months, the Citation Encore market has increased modestly, with available inventory increasing approximately 30% compared to this time last year. At the same time, asking values have remained relatively stable, declining only 1% year-over-year. From a transaction standpoint, Encores continue to trade steadily. Days on market have decreased meaningfully year-over-year, which suggests that well-maintained aircraft are still finding buyers in a reasonable time frame. Over the past 12 months, there have been 19 retail sales, with an additional 4 transactions already recorded since the beginning of 2026. Recent sales activity has primarily involved 2001 through 2004 model-year aircraft. Aircraft equipped with avionics upgrades and refreshed color palettes continue transacting acting more quickly than less updated examples. Looking at supply and demand, the market is currently carrying approximately 9.8 months of inventory, which keeps the Encore in a relatively balanced market environment overall. While buyers remain selective, aircraft with current maintenance pedigree, updated avionics, and overall modern presentation stand out in the market. The Citation Encore continues to appeal to buyers who value useful payload capability, operational flexibility, and the well-established Citation support network. In summary, the Citation Encore market remains active with limited inventory and steady transaction activity continuing into 2026. Overall, I'd characterize the Encore market as competitive and assign it an A demand rating. For owners considering a sale, preparation, timing, and market positioning can have a meaningful impact on overall results.