...May 22, 2024 Auction.com's operating performance remains challenged due to the limited inflow of distressed real estate properties. The company's narrow business focus on the distressed real estate markets renders it dependent on cyclical and distressed real estate inventory volumes that are outside of its control and determined by external macroeconomic factors, such as mortgage rates, unemployment rates, and property values. Recent constraints on the volume of foreclosed properties include increased homeowner equity, a supplier-specific moratorium, and industry cyberattacks, which has kept distressed real estate volumes at less than half of normal levels. We expect the constraints on foreclosed properties will steadily abate in the next 12 months, which will be partially offset by weak real estate demand in the short term. We expect more significant foreclosure activity in 2025 as the backlog of distressed properties is replenished by a rise in delinquencies associated with the higher...
