Sales of business jets were up 15 percent year over year at the end of Q3. The new tax laws made purchasing an airplane more affordable. If you use it for business purposes 50% of the time you can depreciate the plane 100% in year 1. Effectively you could purchase a $5M plane for $2.5M (don’t forget the $1M annual maintenance fees). This has led to the purchase of jets in fractions where you purchase the use of a private jet for 1/8 of the year and similarly pay fractional maintenance fees.
“They’re flying off the shelves.”
Bill Papariella CEO Jet Edge
Mortgage Rates – improved slightly this week as the 10 Year US Treasury note decreased marginally.
New Homes – are selling well, the number of signed contracts is up nearly 17% from November of 2018. The median home price is up 7.2% year over year.