Home auctions continue to draw big crowds locally. Nearly 1,800 bidders attended an auction April 2 of 80 foreclosed homes at the San Diego Convention Center.
The rise in foreclosures continues to attract first-time buyers, move-up buyers and investors, according to property auctioneer REDC, or Real Estate Disposition Corp.
Irvine-based REDC has hosted two auctions in San Diego County this year. It says it’s sold 169 homes worth $27.4 million and has two more auctions in the works here before year-end.
Banks and other lending institutions contract with REDC or other auctioneers to sell large inventories of trouble assets acquired during the recent collapse in the housing market.
According to Irvine-based RealtyTrac, which compiles home foreclosure data nationwide, one in every 186 homes in San Diego was at some stage of foreclosure in February. And according to REDC, 30 percent of buyers at its auction are buying as an investment.
REDC says it sold 487 properties totaling $62.9 million in Southern California in late March and early April.
In the most recent auction in San Diego, REDC sold 72 homes for $11.3 million.
Homes sold include a three-bedroom, three-bath condo in Del Mar for $441,000. The opening bid for the condo was $199,000 for a property valued at $700,000. The auctioneer also sold a four-bedroom, two-bath home in Escondido for $168,000. The opening bid for that home was $59,000 and it was last valued at $275,000. In addition, it sold a five-bedroom, three-bath home in Chula Vista for $294,000. The opening bid was $139,000 and it was last valued at $675,000.
REDC CEO Jeff Frieden says 2008 was its biggest year since launching in 1990, and predicts 2009 will be even better.
‘Surreal Atmosphere’
“It’s been a surreal atmosphere at every venue,” he said.
REDC says it held 300 auctions in Southern California in 2008, selling 33,000 homes for $3.4 billion. In San Diego last year, REDC says it sold 552 homes valued at $114.5 million.
Spokesman Rick Weinberg says REDC sells properties for most of the top 25 U.S. banks.
