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Auction Industry Reports Slower Growth in First Quarter of 2008
Auction Industry Reports Slower Growth in First Quarter of 2008
Overland Park, Kan., May 1, 2008 - The National Auctioneers Association recently announced the results of its first quarter survey of Auctioneers throughout the United States. The report concluded that 33% of Auctioneers reported an increase in gross sales receipts during the first quarter of 2008. In the first quarter of 2007, respondents reported an increase of 34%. The overall net increase in gross sales revenue for live auctions conducted during the first quarter of the year compared to last year was 3.25%.
In the first quarter of 2007, 62% of respondents reported that they believed they would see an increase in annual revenue, while only 56% of respondents in the first quarter of 2008 agreed with this statement. Thirty-three percent of respondents reported that they conducted more auctions in Q1 2008, then during the same time period in 2007. Thirty-three percent of respondents reported that they conducted fewer auctions in Q1 2008 compared to Q1 2007. Comparable numbers from Q1 2007 were 30% (More Auctions) and 19% (Fewer Auctions). The average number of auctions conducted during Q1 2008 was 19.
The rate of growth in residential real estate auction revenue in the first quarter of 2008 has decreased slightly compared to Q1 2007. Estimated growth of residential real estate auction revenue in Q1 2007 was 3.2%. Q1 2008 figures displayed a decrease of -3.5%. Revenue from agricultural and land real estate auctions increased slightly during Q1 2008 to 1.7%. Commercial and industrial real estate auction revenue decreased slightly to -1.6%.
“While the winter months are traditionally difficult months to sell real estate and the fears of a recession and a troubled economy have created concern among consumers, the auction industry continues to grow in the majority of its sectors,” said NAA President Tommy Williams, CAI. “We anticipate the second quarter reports to show significant growth in real estate auctions as more and more companies are reporting increases in business.”
If the current tread holds, initial projections conclude that the live auction industry will sell approximately $278.8 billion in goods and services in 2008, compared to $270.7 billion in 2007.
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About the NAA
Headquartered in Overland Park, Kansas, the National Auctioneers Association represents the interests of approximately 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 2007, over $270.7 billion in goods and services were sold at auction. To learn more about Auctioneers, auctions and the NAA visit: www.auctioneers.org.
