Residential Real Estate Auctions Expand Nationwide

The number of auctions nationwide rose 5.9 percent in the third quarter of 2006 over the same period last year, led by a growing number of residential real estate auctions, according to the National Auctioneers Association and an article in The Chicago Tribune.

As the housing market cools and unsold property inventory rises, awaiting a buyer, both residential real estate “buyers and sellers are turning to the auction method, and we foresee this trend continuing to increase,” William Sheridan, president of the Overland Park, Kan.-based trade group, said.

The number of residential real estate auctions, the industry’s fastest-growing segment, grew 4.5 percent in the third quarter.

Part of the growth might be due to the fact that auctioneers are making a bigger effort to get the word out. They spent 12 percent more on marketing and advertising in 2005 than in 2004, the group found.

Also, however, more residences are going into foreclosure as adjustable-rate mortgages reset and borrowers cannot keep up with payments. These types of property often head to the auction block.

We’ve discussed the pros and cons of bidding on them, as well. For some, foreclosed properties may offer the best homeowning deals. Just be aware of how the process works.