The National Auctioneers Association (NAA) unveiled projections for 2007 industry growth predictions during its recent conference in San Diego. MORPACE International conducted the survey and projected the industry to grow $7.6 billion to $264.8 billion by the end of the year. 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%.
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