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Auction Industry Update

Auction Industry Update
Third Quarter Results of Research Study Show Shift in Auction Industry

Overland Park, Kansas - According to National Auctioneers Association members, gross revenues during the first three quarters of 2005 increased 4.75 percent from the same period in 2004. If this trend continues, the auction industry will contribute nearly $227.5 billion to the 2005 economy. The increase in sales also occurred in a period when 10 percent fewer NAA members reported increases in gross sales receipts and 20 percent conducted fewer auctions this year.

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

“Our research indicates that the auction industry is shifting focus and NAA members are responding to the expanding opportunities,” said Dennis Kruse, CAI, NAA president. “Nearly half of our members still see increasing revenues.”

According to the NAA’s study, auctioneers found opportunities in real estate. Gross revenue from residential real estate auctions grew 8.2 percent compared to the same time last year. The value of all residential real estate sold at auction in 2005 is estimated at $13.1 billion. While revenue from commercial and industrial real estate auctions and vacant land and agricultural real estate auctions remained largely unchanged, real estate auctions remain on pace to top $48 billion in gross revenue for 2005.

The following are other key findings documented in the quarterly report:

Thirty-three percent of NAA auctioneers say they have seen no change in gross sales receipts for the third quarter of 2005 compared to last year.
In 2005, 61.1 percent of NAA members believe they will see an increase in gross sales revenue. In 2004, 68.2 percent responded similarly.
Overall, the number of auctions conducted in 2005 increased by 4.2 percent compared to the first three quarters of 2004 which brings the average to 45 auctions with a median of 20.
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.

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With more than 6,200 members from throughout the world, the National Auctioneers Association is the largest organization of its kind dedicated to promoting the auction method of marketing and enhancing the professionalism of its members. Member benefits range from federal legislative representation to comprehensive continuing education programs. For more information on the NAA and its programs, log on to www.auctioneers.org.