SOURCE: John Dixon & Associates

John Dixon & Associates

January 18, 2011 09:14 ET

Auction Results Point to Improving Economy

MARIETTA, GA--(Marketwire - January 18, 2011) - Residential and commercial properties are beginning to attract more buyers as the economy stabilizes and gains strength, according to John Dixon, president of Marietta-based John Dixon & Associates, which specializes in selling bank-owned properties. And that, he believes, is a good indicator that the economy is improving.

"You can get a good feel for the direction of the economy by looking at the number of bidders at our auctions, what they're buying, and what they're willing to pay," said Dixon, who saw a turnaround in the fourth quarter.

Dixon outlines his expectations in a newsletter sent to investors, bankers and customers.

"When nobody's building houses, there's not a lot of interest in home sites. But we auctioned more than 980 home sites during the last quarter of 2010, with much stronger demand. That tells me investors are starting to anticipate new construction in the near future," said Dixon.

Commercial buildings also are drawing stronger crowds of bidders, but commercial land is still weak, he said. "Buyers are going for properties they can use in the short term with minimal investment. Good examples are retail stores, restaurants and self-storage units. But commercial land is coming back more slowly, and we think it will remain weak until at least midyear," said Dixon.

Investment homes are attracting more bidders, but luxury homes are still weak, he said. "For recreational land and luxury homes, sellers have to be willing to accept the current market prices, which are well below the values we were seeing four or five years ago," he said.

Dixon also noted that his firm in 2010 became the nation's first auction company to sell properties acquired by lenders through loss-share agreements, under which the FDIC absorbs part of any losses when the properties are sold.

"The FDIC's requirements for auction companies conducting loss share sales are very strict, so we were very proud to be selected," said Dixon.

John Dixon & Associates, based in Marietta, Ga., is a leading auctioneer of bank-owned properties throughout the United States. Individuals who wish to receive a copy of the newsletter may contact the firm at 770-425-1141 or by visiting www.johndixon.com. More auction information.

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