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AUCTIONS GROW IN POPULARITY AND SUCCESS, NAR SURVEY FINDS

 WASHINGTON, Nov. 30 ~PRNewswire~ -- The use of auctions by real estate professionals as a viable marketing tool is steadily gaining ground, dissolving the perception that this selling technique is limited only to distressed properties, according to the results of an auction market activity survey conducted by the National Association of Realtors.
 The survey, conducted in June 1992, is based on the responses of 131 U.S. auction firms and tracks auction activity from the first quarter of 1990 through the second quarter of 1991.
 The data collected includes the number of real estate auctions held per quarter, the number of bidders attending, and the types and selling prices of the properties offered.
 Among the survey's findings was a 1 percent increase, to 4,400, of the number of real estate auctions held across the country in 1991, compared to the number held in 1990. In addition, the survey found that the number of bidders who participated in real estate auctions rose by 27.6 percent in 1991 to more than 625,000. In addition, the number of registered bidders per real estate auction climbed by 26.5, to 134 in 1991, from a year earlier.
 The survey also revealed that the number of properties offered through auctions more than doubled in 1991 to just over 81,500. Of those properties offered, the survey found that 83 percent, or 68,000, actually sold.
 Survey findings also showed that during of 1991, the dollar volume of real estate sold at auction totaled nearly $6.4 billion, nearly 65 percent more than the value of the property offered in the previous year.
 Single-family homes, condominiums, and residential lots accounted for 86.4 percent of all sales, and together, accounted for 61.6 percent of the value of real estate sold at auction.
 According to the survey, the average price paid for a single- family home offered at auction during the second half of 1991 was $80,100, compared to the $125,000 average price for all single-family homes sold through a traditional sale during the same period. By contrast, condominiums during the same period drew an average price of $106,900 at auction. During the second quarter of 1991, single- family homes sold at auction represented roughly one-half of 1 percent of the dollar value of all single-family homes sold, while sales of condominiums through auctions accounted for 1.5 percent of all units sold.
 The survey also found that the composition of the auction market changed markedly between the first and second halves of 1991. Unit sales of single-family homes, multifamily structures and office buildings all more than doubled, while retail and industrial property sales were at least 50 percent higher.
 "The selling prices revealed by this survey show us that auctions are not always primarily comprised of distressed properties for sale," said 1993 NAR President William S. Chee, a realtor from Honolulu.
 "Auctions are a relatively new approach to selling real estate here in the United States. This survey clearly shows that the method is catching on in our market, attracting more and more companies and drawing more quality properties," Chee added.
 "The basic change that is slowly happening is the perception among Realtors and the public that auctions are not always the last resort to selling a property. They are another option and another way of successfully marketing real estate," said Delbert D. Ludlow, a realtor from Indianapolis and 1992 chairman of NAR's Real Estate Auction Committee.
 "I think realtors are recognizing this fact quicker than the public. But I think it's also starting to catch on with the public too," Ludlow added.
 This latest survey also provided NAR researchers with some of the first insight into the impact of properties owned by the Resolution Trust Corp. and the Federal Deposit Insurance Corp. (RTC~FDIC) in the auction process. The survey found that nearly 42 percent of the real estate properties sold at auction in the second half of 1991 were RTC~FDIC-owned. These properties were especially prevalent in the multifamily and residential lots categories, where they represented 84 and 62 percent of the total sales, respectively.
 The National Association of Realtors, the nation's largest trade association, is the voice for real estate, representing nearly 750,000 members involved in all aspects of the real estate industry.
 -0- 11~30~92
 ~CONTACT: Trisha Morris, 202-383-7560, Annemarie Roketenetz, 202-383-7560, or Scott Sherwood, 202-383-1016, all of the National Association of Realtors~


CO: National Association of Realtors ST: District of Columbia IN: SU:

IH -- DC003 -- 4017 11~30~92 08:45 EST
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Date:Nov 30, 1992
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