Auction market dominates while housing sales slump

Buyers are increasingly turning to real-estate auctions for quick purchases. While housing sales decreased nationally by 26 percent in 2007, the real-estate auction market climbed 5.3 percent, generating $58.4 billion. Builders are turning to auctioning new developments as potential buyers believe they get a better price on the auction block. One auctioneer sold 188 of his 200 new homes and townhouses in an auction in Minneapolis, getting about 55 percent to 57 percent of the original asking price. Winning bidders usually need to make a non-refundable down payment and complete the sale within 45 days.