REOs Popular on the Auction Block: RealtyBid.com attracts a growing variety of buyers bidding for properties.

Realtors and banks are gaining more confidence in selling slow moving properties and REO properties on the Internet. According to a report commissioned by the National Auctioneers Association, the most significant growth among all types of auctions during 2006 was seen in residential real estate auctions, which generated $16 billion.

Another prime example of this growing trend in the online auctioning of REO properties is the record-breaking 2006 numbers that the online real estate auction firm RealtyBid.com experienced.

According to RealtyBid.com's 2006 figures, the number of properties offered for auction on RealtyBid.com in 2006 increased by more than 53% over 2005. RealtyBid.com's 2006 inventory of properties offered for auction represented $251 million in asset value. In 2006, RealtyBid.com property sales increased by more than 57% over 2005.

In October, RealtyBid.com's monthly inventory of properties "up for auction" topped more than 1,000 for the second time in four months and just the second time ever. October's inventory of 1,038 properties was an increase of 421% over October 2005.

"Auctions are becoming more popular, but based on market factor, REO auctions are becoming more popular," said Tony Isbell, president and CEO of RealtyBid.com.

Looking at the NAA's year-end numbers from years past, the growth of real estate auctions becomes even more evident. Over the span of the past four years, from year-end 2002 to year-end 2006, residential real estate auctions grew by 56.8% to $16 billion from $10.2 billion.

Online real estate auctions have become a big part of the mainstreaming of real estate auctions. RealtyBid.com has sold more than 5,000 properties online and currently sells an average of more than 200 properties online per month, 90% of which, according to Mr. Isbell, are REO properties.