Nearly $79 billion worth of real estate changed hands via auction last year, according to an Indiana-based management consulting firm.
The Gwent Group's figures includes live sales, government sales, estate and private "boardroom" sales, sealed bid auctions and Internet auctions. The total also includes toxic, non-performing paper sales by financial institutions of their non-performing, pre-foreclosure sale of mortgages, according to the Bloomington based firm's chairman, Steve Martin.
"Our review of the industry takes in a broad range of activity, reflecting that competitive bidding amounts to an auction regardless of the heritage or training of the person soliciting and accepting the bids," Martin said. "Online auctions have become a major part of the economy, even though very few of those conducting these auctions are in fact auctioneers in a traditional sense."
The firm is expecting a "dramatic increase" in auctions this year next for commercial real estate, largely because "tremendous buying" is sitting on the sidelines waiting to pounce. To date, there has been a shortage of bidders. But Martin pointed out that "Corporate America" is holding $1.2 trillion more than normal in cash reserves.
