Now Is The Time to Sell, But Why Are Prices So Strong?

Market update from Raffi Aharonian, Managing Director of Rouse Appraisals

With the landmark Orlando auction officially in the books attracting 26,000+ bidders and generating US$213+ million in gross transaction value —it’s a good time to take a step back and see where the market has been and where it might be headed. Since the onset of the pandemic in early 2020, we have experienced interesting market dynamics develop, carrying forward to present day where we are driving very strong pricing for consignors, but how did we get here? Initial Pandemic Response After the initial shock of global lockdowns in Q1 2020, we saw markets react abruptly with some sharp price reactions. For the equipment industry, the good news is downward pricing moves were short lived, on the back of the essential nature of construction work. Despite that, looming uncertainty caused a lot of disruption in terms of normal fleet replacement cycles. Rental companies, OEM dealers, and contractors deferred or cancelled orders placed earlier in the year, and many began selling equipment to right-size fleets in the event of a prolonged downturn. READ FULL ARTICLE>>