According to the latest Market Report from EquipmentWatch, the average full market value (FMV) of construction equipment decreased by 0.8% in December 2022 compared to December 2021. In November, the resale prices of construction equipment dropped by 4.1%, which was the biggest change recorded in 2022. However, the report reveals that December's average FMV surpassed this record by dropping 4.2% compared to the previous month. These consecutive declines resulted in a nearly flat rating of the average FMV compared to December 2021.

As the prices decreased, resale and auction activity increased, as per the report. It shows that resales increased by 1.1% in December compared to November and were 7.8% higher than in December 2021. The increased activity was attributed to a significant rise in construction starts and an anticipation of strong activity in the manufacturing and infrastructure sectors. The report also indicates that owners were likely offloading their older equipment with higher usage than in previous periods in preparation for upcoming projects.

Compared to December 2021, equipment age was up by 4.5%, and usage was up by 9%. The average age and usage were also up compared to November, rising by 5.7% and 2.1%, respectively. Auction activity rose even more dramatically, up by 36.4% compared to December 2021 and 162.4% compared to November. Interestingly, the EquipmentWatch report indicates that auction activity even exceeded that of 2020 by 1.9%. Among resale and auction channels, the top-selling types of equipment were crawler excavators, articulated wheel loaders, compact track loaders, compact excavators, and backhoes.

EquipmentWatch's monthly report tracks resale and auction prices for more than 15,000 models across 389 manufacturers throughout North America. EquipmentWatch is owned by Randall Reilly, parent of Equipment World.