Bubble Wrap

The new estates on the block

The Star Ledger reports on the growing trend in New Jersey of luxury properties being put on the auction block to attract buyers, with one mansion, Froh Heim, being auctioned to the highest bidder after being on the market for $8.9 million. According to the Otteau Valuation Group, inventory of properties priced above $2.5 million is 3 times the state average, making it an attractive category for auctions.

“There’s no question that the level of inquiries increased with respect to luxury homes—sellers seeking an alternative way of marketing,” said Jeff Hubbard, an executive vice president of Sheldon Good & Co. Auctions Northeast, in Manhattan. “In the luxury-homes segment, you will probably see it increase 30, 40 percent next year.”