The auctioning world has changed drastically with the introduction of technology into auctioning. If you were to take part in an auction 20 years ago, it would have taken place completely offline. However, today, there are many auctions that are completely online. eBay, the notorious online auctioning website, has been around for many years and became a new way for ordinary people to auction their personal items online. That is just one example of how things have changed over the years. As technology increases, there are even more changes that occur to the auctioning world. In 2016, you can expect to see even more differences and trends emerge. Review these hot auction trends so you can be prepared for how things will be changing.
- Auction Consolidation. This trend began first in car dealerships but it is now spreading to the auction world. In this trend, larger and medium size auction groups are purchasing stand-alone auctions. If you have a favorite small auction that you go to, then you may find that over the next few years, if not this year, it will be purchased by a larger auctioning company. An example of this already occurring in the auction world is when ADESA acquired a smaller auction site in Pittsburg. ADESA is currently the second largest auction company in the United States and they have already said that there are between 5 and 10 auction houses they will purchase if the opportunity arises. These smaller auction companies are becoming very popular investments.
- Increase in Demand and Price. With the availability of partaking in an auction becoming more and more easy to obtain with technology, you can expect prices of items to increase and demand to increase. This is due to the fact that mobile auctions are becoming more and more popular. In the case of auctioning homes, this increases the price and demand as a tactic to get more for the home. With technology so readily available, it is easier for more people to take part in an auction and research has shown that the people partaking in auctions are spending at unparalleled rates. Additionally, more people that have money to spend are spending that money on luxury goods through auctions. With these components, you can expect to see higher prices at auctions than ever before.
- Home Auctions. You will see even more agents and homeowners trend towards selling their home online through the use of auctions. Those who have already started to do this have seen the benefits that come with the auction including a higher selling price than with the traditional method (see trend number 2). While you may have seen this happen with a few homes in your area, you can expect to see more and more of it. Home auctions are no longer just the way for the government to sell home that have been foreclosed. Now, private sellers and real estate agents will put their focus on trying out this trend and using it more often as a way to move inventory.
- Live Streaming of Live Auctions. This trend has already started with eBay live streaming some Sotheby’s auctions this year. This first one occurred in February of 2015 and was very successful. However, with technology and the want to include individuals in the auction that cannot be there in person, this trend will continue to increase. You may also see a reduction in live auctions that do not take place on the internet because it seems to be a lot easier and more effective to have these done online. For those that remain, you will see options for live streaming so you can take part from the comfort of your home and personal computer.
- Rise in Mobile Technologies. For many years, people have been able to take part in online auctions from the comfort of their home. With technology focusing more on mobile platforms in many areas, the auction world will also see some changes in this area. There will be more and more mobile platforms created for the sole purpose of auctions. As these are created, more and more auctioneers will be utilizing this technology simply because the general public is demanding it. It is easier to use and will provide more access to auctions which will result in higher success rates for many companies.
As you can see, most of the trends in the auction world revolve around technology and mobile advancements. This is something that cannot be ignored. It has become something that the general bidding public has started to expect when it comes to auctions. It is important to pay attention to these trends as they will not be fading quickly. Knowing these hot auction trends can prepare you for what to expect both as an auctioneer and a bidder in 2016.