West Coast Home Auctions is holding a big auction sale this weekend in Elk Grove. In the spirit of the Priced To Sit series, I ran a brief comparison of the West Cost starting bid prices with the resale market. I also threw in pricing data from two nearby new house builders.
West Coast is auctioning off inventory that Standard Pacific Corp has been unable to sell:
"This is a fast, efficient way for us to close out and complete the project," said Jackie Shipley, the firm's vice president of sales and marketing. "We feel like we've had a lot of success in that community. ... It's important for us to do this and move on."
Shipley said auction advertising already has tripled the number of people coming to see the six houses, the last of a 172-home subdivision called Estancia at Belavida that Standard Pacific opened in late 2004.
Minimum bids will range from $430,000 to $530,000 for the four- and five-bedroom houses in a new neighborhood near Elk Grove's Franklin High School. That means bidders, expected to be a mix of would-be homeowners and investors, must meet at least the builder's minimum price to get the house.
There are currently 256 resale houses (including 74 flippers) on the market within the 6 square-mile area that includes the auction site. The area also continues to be built out, with several builders actively pursuing projects. Finally, a 7,000+ house community is currently being developed directly adjacent:
Like my previous analyses, I have plotted resale and flipper inventory on three graphs along with published builder pricing. For this particular analysis, I chose Dunmore Homes and JMC Homes for comparison purposes. (There was a lot to choose from.):
As you can see, Dunmore and West Coast have done their homework in terms of pricing. Both companies are clearly in front of whatever the resale market is doing. Whether their prices are competitive in an absolute sense, I guess we’ll find out this weekend.
BTW: If anybody is planning to attend this auction, please let me know. I want to do a followup piece in case the Bee chickens out.