Auction Industry Report Projects Continued Positive Growth

. July 26, 2007

During the “State of the Industry” forum at the 58th International Auctioneers Association Conference and Show in San Diego, the National Auctioneers Association (NAA) unveiled industry projections for 2007. The industry survey was conducted by MORPACE International and projected the industry to grow $7.6 billion in 2007. If the current trend continues, analysts project industry revenues to reach $264.8 billion by the end of the year. This is the fourth consecutive year that the live auction industry has witnessed growth. In 2006, the total value of goods and services sold at auction totaled $257.2 billion, an increase of 7.1% from 2005.

The MORPACE survey tracked growth within individual auction specialty areas. The largest auction specialty segment with estimated gross sales of $87.3 billion in 2006 was automobile auctions. The fastest growing auction specialty is real estate. Residential real estate auctions grew 39% between 2003 and 2006. During this same time period, land and agricultural real estate grew 33% and commercial and industrial real estate grew 27%.

The MORPACE quarterly survey compiles data from NAA members and non-NAA members. Forty-one percent of respondents reported an increase in gross sales receipts through the first half of 2007, with twenty-nine percent reporting “no change”, and thirty percent reporting a decline. Thirty-four percent of NAA members say they have conducted more auctions in the first half of this year compared to last year with forty-two percent reporting “no change” and twenty-four percent reporting decreases.

The survey also highlighted growth in the real estate sector with thirty-six percent of respondents reporting increases in residential real estate sale receipts and a twenty-three percent increase in commercial real estate. Charity auctions were also reported on the rise. Since 2003, total growth of this auction segment has increased 16.3%.

About the NAA

Headquartered in Overland Park, Kansas, the National Auctioneers Association (NAA) represents the interests of almost 6,000 auctioneers in the United States, Canada and across the world. Founded in 1949, the mission of the NAA is to promote the auction method of marketing and enhancing the professionalism of its members through education and technology. In 2006, the auction industry grew by 7.1% with over $257 billion in goods and services sold. To learn more about Auctioneers, auctions and the NAA visit: www.auctioneers.org.

Category: Auction News

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