SEATTLE - In yet another reminder of the tough economy, unsold homes are going up for auction - even in some of Seattle's most desirable neighborhoods.

On Sunday, 12 condo units in the old Queen Anne High School building hit the auction block. The luxury condos just weren't selling, but plenty of people showed up at the auction to see if they could get a bargain and make a killing.

A few spirited bidding wars erupted.

Andre LeCompte was determined to land one of the townhouses. And after a few minutes, he won - spending $426,000 on a property that originally had a selling price of nearly $600,000

"I feel like I got a good deal," he says. "It definitely was under market. I would have liked to purchase it where it came down to me and one other bidder. But two people committed to buying something runs the price up a bit."

A bid of $685,000 by a young couple netted the most expensive unit - the penthouse. Just a few months ago, it was listed for $1.3 million.

The couple's bid was only $35,000 more than the minimum selling price set at the auction. By some estimates, they got a steal of a deal for the 1,400 square-foot unit, with amazing views of downtown Seattle.

The 12 units here previously had a combined listing amount of $6.5 million. On Sunday they all sold for $4.5 million.

Sunday's sale of prime Queen Anne real estate is closely being watched as a possible indicator of where prices need to be to get hesitant buyers off the fence.

And for a few buyers, it worked.

Says renter Christina Balam: "So when this auction came up, it was the perfect opportunity to get a home for less than what they were selling originally for."

And with the economy on rocky terrain, these kinds of property auctions are attracting more and more attention. There's a hunger for real estate bargains.