Challenger 300, Challenger 604, Challenger 605
After an active fourth quarter of 2018, activity has cooled off a bit in the Challenger 300 market as we head into the second quarter of 2019. The fourth quarter of 2018 produced a whopping 15 transactions with just 16 aircraft for sale on average. The first quarter of 2019 slowed to nine transactions, which is still pretty good for a market averaging only 15 listings during that time period. Pricing has remained flat since increasing during Q4 2018. Strong pricing has kept the Challenger 300 a seller’s market, but if demand continues to cool off this could provide some good opportunities for buyers.
After averaging 13 sales per quarter for the past two years, the Challenger 604 market only produced four transactions during Q1 2019. 2018 was a huge year for the Challenger 604 market. A total of 54 transactions took place, and inventory dropped from 32 aircraft to just 18 listings. Currently there are 20 Challenger 604 aircraft for sale. This represents 5% of the active fleet. Inventory levels are well below the first quarter of 2018, but up slightly from the second half of 2018. Pricing has held strong for a full year now, showing that historically low inventory is having a positive impact on values. Even with transactions slowing recently, steady pricing and historically low inventory provide good opportunities for both buyers and sellers.
Transactions slowed once again in the Challenger 605 market, but that didn’t keep pricing from increasing as we head into the second quarter of 2019. After averaging eight sales per quarter for the first part of 2018, transactions slowed to just four sales during Q4 2018. Looking for a rebound, sales slumped again to just three transactions during Q1 2019. Inventory bumped up to 13 listings, which still represents just 4% of the active fleet. Even with the recent activity slow down, pricing has increased after remaining steady for over a year. With strong pricing yet signs of slowing demand, this market provides benefits for both buyers and sellers.