While last weekend saw the West One auction in Long Beach (more on that later), let's focus on another auction held yesterday at the Sheraton Universal Hotel. This auction hawked 25 new condominiums in a Studio City (it looks like the condo were in a building called Acama Villas; it's pictured) and according to the official web site, starting bids were $279,000 on units that were previously listed at $765,000. So how'd it all go down? A brave reader who attended the event files this report. "Units ended up selling for less than $300 per sf, and between $400-500k per unit. Most were 3BR, but there were some 2BR units as well. The auction psychology was interesting too, as the first few buyers lost about $30-60k by bidding early because the same units were selling for less about an hour later."
"At the end people were reluctant to bid and some of the previously sold units didn't close in the back room and came back out to auction, where they then sold for less money.
This will be a very important data point in Studio City real estate where everyone largely thought prices might be insulated. Now any condo trying to sell will probably have this as the high water mark, and certainly anyone trying to sell a used condo unit will have to seriously look at their pricing."
· Long Beach's West Ocean Two Auctioning Off 39 Condos [Curbed LA]