From Crain’s New York Business:
More than a thousand real estate bargain hunters spent $13.2 million Sunday snapping up foreclosed homes in New York and New Jersey during an auction in New York City. In addition, two successful bidders walked away with oceanfront lots in the Bahamas—at discounts of about 85%.
At its last New York City event for the summer, Real Estate Disposition Corp.’s Auction.com put 149 properties on the block, including 10 vacant lots totaling 2.5 acres located in Cistern Cay on the Berry Islands, just northwest of Nassau.
Other deals of the day included the sale of a 1,498-square-foot, four-bedroom house in Suffolk County, L.I., for $126,000, 67% less than its stated value of $381,000, and the sale of an artsy 3,150-square-foot, 18-room, seven-bedroom house in the Bronx, for $367,500, 37% less than its estimated value of $595,000.
“These auctions will clear up inventory,” says Bill Staniford, CEO of PropertyShark.com. “We will see more foreclosed homes auctioned off.”
Foreclosures in the five boroughs were up 14.8% in July, to 2,192, from the same time last year, according to market research firm RealtyTrac.
Auction.com’s latest event attracted a slightly smaller crowd than its previous auctions. Of nearly 1,500 pre-registered attendees, only 1,175 showed up at the Sheraton New York Hotel and Towers in midtown Manhattan. The company’s previous New York events in March and June drew crowds of more than 1,200 and drummed up about $28.2 million in sales from more than 300 properties.
“REDC has been pretty successful,” said Mr. Staniford, who did not attend Sunday’s event. “It’s a decent turnout considering most people are on vacation during this period.”
So far this year, Auction.com, a subsidiary of Irvine, Calif.-based REDC, has auctioned more than 20,000 foreclosed houses across the nation for $1.4 billion.