Auction Industry Growth Continued in First Quarter of 2007, NAA Research Study Shows

Gross sales revenues from auctions by NAA members in the first quarter of 2007 increased 2% over the same-time period one year ago, a study by the NAA has found. If this trend continues, this will translate into approximately $266 billion total revenue for 2007 for the entire auction industry, up from $257.2 billion in 2006, a projected 3.4% increase for all of 2007.

This suggests the possibility of a slightly slower growth in the live auction industry in 2007 compared to 2006, when a 7.1% growth rate occurred for all of 2006 over the previous year. The first quarter growth last year was 5.7%.

These are the findings documented in a quarterly report of auction industry growth being conducted by global market research firm MORPACE International on behalf of the National Auctioneers Association (NAA).

NAA President William Sheridan, CAI, ARRE, GPPA, said, “While the growth has slowed a bit, we are pleased that there is a solid and continued growth of the live auction industry in 2007.”

The following are some other key findings documented in the quarterly report:
The growth of the residential real estate auction business continues. The estimated growth of 3.2% for the residential real estate auction business in first quarter 2007 is slightly higher than the estimate was at the same time last year at 2.6%. Revenue for agricultural real estate auctions, however, declined by 3.6%. Revenue for commercial and industrial real estate auctions remained essentially unchanged (at – 0.1%).
34% of NAA members say they saw an increase in gross sales receipts in the first quarter of 2007 compared to the same-time period one year ago. At the end of the first quarter of 2006, 42% said they had seen an increase compared to a year ago. Among those who say they have seen an increase, the median amount of increase reported was 20%.
30% of NAA members say they have conducted more auctions in first quarter 2007 than they did in 2006, while 19% say they have conducted fewer than last year. Comparable numbers from this time in 2006 were 33% and 19%, respectively. This suggests there has been slightly lower auction activity in the first quarter than one year ago.
Funded by the National Auctioneers Foundation, the Auction Industry Research Study was commissioned by the NAA in 2003 to study and document the growth of the live auction industry. Results of the initial study were released in July 2004 and updates are being conducted on a quarterly basis.

With about 6,000 members throughout the world, the National Auctioneers Association is the largest organization promoting auctions and the competitive bidding method. Member benefits range from federal legislative representation to comprehensive continuing education programs, including coursework to earn the following designations: Certified Auctioneers Institute (CAI), Benefit Auction Specialist (BAS), Accredited Auctioneer, Real Estate (AARE), Graduate, Personal Property Appraiser (GPPA) and Certified Estate Specialist (CES). For more information on NAA, visit www.auctioneers.org.

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