Gross sales revenue of the live auction industry grew by 6.3 percent in the first half of 2006 as measured by recent surveys of NAA members. This is compared to the same time period one year ago. If this trend continues, this will result in about $255.4 billion in total revenue for the entire industry, up from $240.2 billion in 2005. Residential real estate auctions, the hottest category of all auctions, grew by 4.4 percent in the first half of 2006, up slightly from the 4.0 percent at the same mid-year point last year. Residential real estate grew at 8.4 percent overall in 2005 and has been the topic of widespread media coverage as a growing business niche.
These findings were gathered by the global market research firm MORPACE International on behalf of the National Auctioneers Association (NAA). Results are updated quarterly.
"This research shows the continued growth and popularity of the auction industry," said NAA President William Sheridan, CAI, AARE, GPPA, of Mason, MI.
The following are some additional details from the report:
-- Thirty-six percent of NAA members say they conducted more auctions in 2006 than they did in 2005, while 22 percent said they conducted fewer and 42 percent said they saw no change in the number of auctions.
-- The overall outlook for the second half of 2006 is somewhat more cautious than it was in mid-2005 for the end of last year. Forty-one percent of NAA members said they saw an increase in gross sales receipts in the first half of 2006, compared to 57 percent that said they saw an increase at this mid-point in 2005, leading to a more cautious outlook for the rest of 2006. The percentage of those who believe they will see an increase in revenue in the remainder of 2006 is 57 percent, down from 69 percent last year.
-- Land and agricultural real estate auction revenues grew 0.7 percent in the first half of 2006, compared to 0.5 percent in the same period last year. Commercial and industrial real estate auction revenues grew by 2.0 percent in the first half of 2006, compared to 4.8 percent for the same period last year.
A detailed statistical report of full year 2005, with information on all auction categories, is available for easy viewing on NAA's homepage, www.auctioneers.org, by clicking on the brown square icon that says "Auction Industry Grows 10.6 Percent." The research study is funded by the National Auctioneers Foundation.
With more than 6,000 members from throughout the world, the National Auctioneers Association is the largest organization of its kind dedicated to promoting, increasing and building trustworthiness of the competitive bidding method of marketing, and enhancing the professionalism of its members. Member benefits range from federal legislative representation to comprehensive continuing education programs, including coursework to earn the following professional auctioneer designations: Certified Auctioneers Institute (CAI), Accredited Auctioneer, Real Estate (AARE), Graduate, Personal Property Appraiser (GPPA) and Certified Estate Specialist (CES). The organization was founded in 1949 and is headquartered in Overland Park, Kan. For more information on the NAA and its programs, log on to www.auctioneers.org.