CARY, N.C. -

Last week marked the first time since May that auction sales of vehicles up to 8 years old failed to crack the 100,000-unit mark, but they were still ahead of pre-virus forecasts, according to the Auto Industry Impact Report from J.D. Power released Wednesday.

There were 97,000 auction sales for the week ending July 12. While that’s down from 100,000 units the week before, it’s still 11% stronger than what was projected before COVID-19, according to J.D. Power’s report.

Similarly, Black Book noted in its COVID-19 Market Update released Tuesday: “The trend we have seen over the last month continues with strong sales and even stronger prices. No-sales continued to increase marginally this past week as sellers held firm to floors and buyers have begun to show some restraint.”

The firm added: “Despite most auctions continuing to operate under an all-digital platform, sales volume has rebounded to a level consistent with, and on some days higher, than this time last year. This is being driven by strong retail sales and the need to backfill, which are then leading dealers to use auctions as their main source of inventory.

“The number of sales bottomed out around an 80% year-over-year decline when most auctions closed their physical sales (and some closed entirely) at the end of March,” Black Book said.

Sales rates at auctions also remain steady and strong, according to the Black Book data.

Going back to the week of June 8, the estimated average weekly sales rate at U.S. auctions has remained above 60% for five straight weeks, with the rate for the week of July 6 coming in at 63%.

“At the onset of the pandemic, as shelter-in-place orders went into effect, sales rates quickly tumbled into the teens, but rates have been climbing each week and have now stabilized,” Black Book said in the report. “Bidding activity isn’t slowing down, but no-sales have slightly increased over the last few weeks as sellers are holding firm to floors, but buyers are exercising caution to not get loaded up in high priced inventory if the market takes a turn. Overall conversion rates remain consistent with a springtime market instead of mid-July.

These wholesale sales volumes and sales rates come as auction prices continue to rise. The week ending July 12 marked the 12th straight uptick in wholesale prices, according to J.D. Power. Over the course of those gains, wholesale prices have climbed a cumulative 30%, J.D. Power indicated. They’re also up 10% from early March, the company said.

In a similar analysis, Cox Automotive chief economist Jonathan Smoke said in a video report from Tuesday that as of this past weekend, wholesale prices were up 8.2% from the beginning of 2020 with retail prices up 2.2.%.

J.D. Power’s wholesale price index for last week was up to 110.4, a 1.5-point rise from the week ending July 5. However, that’s more moderate growth than the 2.3-point weekly average during the preceding four weeks, J.D. Power said.

“While wholesale prices remain incredibly strong, expectations are that they will begin to drift lower heading into August as pent-up demand wanes and pandemic-related macro-economic headwinds increase,” J.D. Power said in the analysis.

“By year's end, prices are expected to be more or less on par with pre-virus levels. It is important to note, however, that while the outlook is relatively optimistic, there remains a great deal of uncertainty surrounding the impact of new virus outbreaks, the potential for another round of federal stimulus, and overall employment conditions,” the company added. “Given these unknowns, a heightened degree of market volatility should be expected.”